Xcel Completes Third Phase of Sherco Solar

• Xcel Energy powers ahead at Sherco: completes the third phase of its 710‑MW Minnesota solar project, repowering a former coal site and advancing low‑carbon electricity across the region.

Xcel Energy completed the third phase of its 710-MW Sherco Solar project in Minnesota, raising the solar park’s total installed capacity to 710 MW. The project is built on the site of the former Sherco coal plant, as the company retires coal generation in phases.

Once fully integrated, the renewables complex will replace conventional power with low-carbon electricity to serve customers across the region. The completion comes as Minnesota and other Midwestern states expand renewable investment to meet carbon-reduction goals while maintaining grid reliability, with utility-scale solar increasingly key to that transition.

How does Xcel’s Sherco Solar phase three advance Minnesota’s coal-to-solar transition?

• It removes more coal generation from Minnesota’s mix by adding additional utility-scale solar capacity at the same location where coal once produced electricity, accelerating the plant-by-plant shift away from coal.
  
• By repurposing the former Sherco site, it supports a “retire-and-rebuild” pathway that can be faster and less disruptive than finding entirely new land and grid interconnection routes.
  
• The added solar output lowers carbon emissions from the power sector as more energy demand is met with low-emitting generation rather than combustion-based generation.
  
• Large, phased additions help manage reliability as coal units come offline, because grid operators can plan for the transition using predictable timelines and incremental performance data.
  
• Increasing the Sherco Solar buildout strengthens Xcel Energy’s long-term clean-energy resource portfolio, improving the odds of meeting state and regional decarbonization targets while maintaining service reliability.
  
• The project’s scale—moving toward a fully built-out renewables complex—demonstrates that utility-scale solar can provide meaningful capacity at the system level, not just a small supplement.
  
• Continued expansion can reduce long-term exposure to fuel price volatility associated with coal, shifting more costs toward renewable asset financing and operations.
  
• Demonstrating successful multi-phase construction and commissioning supports smoother future solar development for other projects in Minnesota and the broader Midwest.
• Redeveloping an existing power-generation footprint can preserve local infrastructure and workforce continuity, helping sustain economic benefits associated with the transition.