Public Utilities Commission approves solar facility near Sherco generating plant

One of the largest solar facilities in the country is set to break ground later this year.

The Minnesota Public Utilities Commission (PUC) approved a site permit for the Sherco Solar 3 project — Xcel Energy’s 250-megawatt solar facility in Clear Lake.

After it’s completed, the project will be one of the largest solar facilities in the country at 710 megawatts, according to the PUC.

The solar generation will replace a large amount of the electricity produced by the coal-fired Sherco Generating Plant Unit 2 that closed in 2023. The project fulfills a requirement in Xcel’s 2020-2034 Upper Midwest Integrated Resource Plan, which aims to procure around 720 megawatts of solar generation.

“Sherco Solar will help deliver more reliable, affordable and cleaner electricity. It’s a win for workers, consumers, and the environment,” said Commission Chair Katie Sieben.

Construction is expected to begin in the fall of this year and be completed by 2026.

Xcel estimates the project will provide around 400 construction jobs and millions in wages for workers. They also anticipate that it will qualify for federal tax credits to help lower the overall cost of the project.

The PUC also approved a 10-megawatt battery pilot project at the site, which features an iron-air battery with 100-hour storage capacity.