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Public utilities

Upgraded Southwest Minnesota Project to Increase Low-Cost Carbon-Free Electricity

Strategic Insights

— 2 min read

ALLETE Clean Energy will repower and expand the Northern Wind site in southwest Minnesota, consisting of the Chanarambie and Viking wind projects, by replacing existing turbines with new, more efficient equipment. This project, totaling 120 megawatts of capacity, will be sold to Xcel Energy and is expected to increase electricity production by more than 10%, saving customers money over the next 25 years. The upgraded project is part of Xcel Energy's plan to deliver 100% carbon-free electricity by 2050, reducing carbon emissions by 80% by 2030. The project will also spur local employment and economic activity, contributing to the company's vision to deliver clean energy solutions while investing in local communities.

Key Takeaways:

  • The Northern Wind site in southwest Minnesota will be repowered and expanded with new, more efficient equipment, increasing electricity production by over 10% and saving customers money over the next 25 years.
  • The project, totaling 120 megawatts of capacity, will be sold to Xcel Energy and is part of the company's plan to deliver 100% carbon-free electricity by 2050.
  • The upgraded project will reduce carbon emissions by 80% by 2030 and help Xcel Energy achieve its vision of delivering clean energy solutions while investing in local communities.
  • The project will spur local employment and economic activity, contributing to the company's goal of realigning capital into exciting, new and complementary clean energy growth opportunities.
  • ALLETE Clean Energy's investment in wind turbines eligible for the safe harbor provision of federal production tax credits and strong local wind resource enable the competitive price of the project's renewable energy.
  • The project was spurred by the Minnesota Public Utilities Commission's request for projects that could help the economy recover from the COVID-19 pandemic and recession by putting people to work and increasing the amount of renewable energy customers receive, while also reducing costs over the life of the project.
  • The sale and redevelopment of the wind sites is pending regulatory approval, with Xcel Energy planning to file the request to repower and purchase the project in mid-February.

Statistics:

  • 120 megawatts of capacity at the Northern Wind site in southwest Minnesota.
  • 10% increase in electricity production, expected to save customers money over the next 25 years.
  • 80% reduction in carbon emissions by 2030, as part of Xcel Energy's plan to deliver 100% carbon-free electricity by 2050.
  • 25 years of cost savings for customers, as a result of the increased electricity production.

Sources:

  • ALLETE Clean Energy, "ALLETE Clean Energy Acquires and Develops Clean and Renewable Energy Projects" (2021)
  • Xcel Energy, "Xcel Energy's Clean Energy Vision" (2021)
  • Business Wire, "ALLETE Clean Energy to Repower and Expand Northern Wind Site in Southwest Minnesota" (February 16, 2021)
  • ALLETE Inc., "ALLETE Reports Fourth Quarter and Full Year 2020 Results" (February 16, 2021)

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