Xcel Energy broke ground on two major infrastructure projects that will help deliver reliable, affordable electricity to customers across the Upper Midwest while supporting Minnesota’s transition to a cleaner energy future.
Xcel Energy broke ground on two major infrastructure projects that will help deliver reliable, affordable electricity to customers across the Upper Midwest while supporting Minnesota’s transition to a cleaner energy future.
The projects, the Minnesota Energy Connection transmission line and Lyon County Generating Station, are designed to work together to address two critical energy needs: bringing renewable energy from where it is produced to where it is needed and ensuring reliable electricity is available when demand is high and renewable resources are limited.
The Minnesota Energy Connection is an 185-mile transmission line that will connect up to 4,000 megawatts of new wind and solar generation in southwest Minnesota to the grid at the Sherco Energy Hub in Becker. The Lyon County Generating Station is a 420-megawatt natural gas peaking plant that will provide always-available generation to support reliability during periods of peak demand, extreme weather and lower renewable energy production.
“These projects represent the next chapter in Minnesota’s energy transition,” said Bria Shea, president of Xcel Energy–Minnesota, North Dakota and South Dakota. “As we retire coal generation and add more renewable energy, Xcel Energy is investing in the infrastructure needed to deliver reliable electricity our customers depend on and keep bills as low as possible. The Minnesota Energy Connection and Lyon County Generating Station are real-world examples of how utility companies can strike that balance.”
Located in Garvin in Lyon County, the two projects will create a major energy hub in southwest Minnesota, a region that continues to play a central role in Minnesota’s energy future as more wind and solar generation come online. The transmission line will unlock access to new renewable resources, while the power plant will provide the flexible, always-available generation needed to support those resources and maintain dependable service.
“Building a cleaner energy future requires both generation and the transmission infrastructure to move that energy where it’s needed,” said Sandra Johnson, senior vice president of transmission, Xcel Energy. “The Minnesota Energy Connection will connect thousands of megawatts of new renewable energy to the grid, while the Lyon County Generating Station provides the reliability needed to support that transition. Together, the projects create a more flexible and resilient grid for customers across the Upper Midwest.”
The Minnesota Energy Connection and Lyon County Generating Station are expected to be completed in 2028.
In addition to strengthening the energy grid, the projects will deliver significant economic benefits to southwest Minnesota. Construction is expected to support hundreds of jobs, and the Lyon County Generating Station alone is expected to generate approximately $300 million in property tax revenue over its operating life, supporting local governments, schools and public services.
