As of October 31, 2025, Xcel Energy asked Minnesota regulators for permission to double the battery storage capacity at a location adjacent to its coal-fired Sherco power plant which is slated to retire by the end of 2030. [1] The Minnesota Public Utilities Commission has already approved 300 MW to be installed at the plant. [2] Xcel is proposing to increase that capacity to 600 MW, making it the largest battery storage site in the upper Midwest. It would also add another 135.5 MW at the company’s Blue Lake facility and expand the Sherco Solar facility with an additional 200 MW. Xcel plans to begin construction on the battery storage projects in 2026, bringing them online in late 2027. They will use lithium iron phosphate battery cell technology that discharge energy in four-hour increments and are quick to recharge, allowing for regular use.

[1] https://puc.eip.mn.gov/web/project/25319?

[2] https://newsroom.xcelenergy.com/news/xcel-energy-to-build-upper-midwests-largest-battery-storage-site?