Minnesota Power says it plans to ask regulators to add 250 megawatts (MW) of wind power capacity, an additional 10 MW of solar power, and 250 MW of combined-cycle natural gas generation. The investment is worth around $350 million, and is being done in part with Dairyland Power Cooperative.
Minnesota Power says it will file later this summer with Minnesota regulators requesting approval of the resource package. After filing, state regulators will open a formal review process to consider the request. After input from stakeholders and the public, a final determination is expected in the latter half of 2018.
Details of the proposal include:
Natural gas. Minnesota Power is proposing a joint ownership structure with Dairyland Power Cooperative to build a 525-550 MW combined-cycle natural gas power plant in Superior, Wis. The plant could enter service in 2024. Minnesota Power would buy around 50% of the plant’s output (250 MW) from a units of parent company ALLETE starting in 2025. The power would meet customer load and stabilize energy supply for times when renewable energy capability is lower.
Wind. A third-party evaluator recommended a 250 MW, 20-year purchase power agreement (PPA) with independent power producer Tenaska, for a wind farm to be located in southwestern Minnesota. The utility says that the Nobles 2 Power Partners wind farm will offer greater geographic diversity among Minnesota Power’s wind resources. Minnesota Power has an option to buy the wind farm after 10 years of production. (Read "Minnesota Power Signs PPA for 250 MW of Wind.")
Solar. To achieve the state’s solar requirements, Minnesota Power proposes adding 10 MW of solar power by 2020 through a 25-year PPA with Cypress Creek Renewables. The addition is in addition to the 10 MW Camp Ripley project that was completed in 2016.
In a statement, the utility says it is meeting or exceeding state standards for renewable power, energy conservation, and carbon emission reduction through a transition away from smaller coal-fired units and the addition of renewable energy. The company has already achieved a 25% renewable energy mix ahead of Minnesota’s goal of 25% by 2025. Minnesota Power expects to reduce carbon emissions on its system by about 40% by 2030 compared with 2005 levels.
Minnesota Power provides electric service within a 26,000-square-mile area in Northeastern Minnesota.
To contact the author of this article, email david.wagman@ieeeglobalspec.com
