The Sherburne County power plant in Minnesota, once the state’s largest coal facility at 2.2 gigawatts, is undergoing a major transformation toward renewable energy generation. Originally built in the 1970s and 1980s, the plant faced significant financial challenges, including a catastrophic failure of its third unit in 2011 that required a $200 million repair. These cost pressures prompted Xcel Energy, the majority owner, to announce retirement plans for all coal units beginning in 2015.
The company has developed the Sherco Energy Hub as a replacement infrastructure system. The first three phases of a 710-megawatt solar array near the coal plant site are now complete, with a proposed fourth phase expected to bring capacity to 910 megawatts by 2029. The facility will also incorporate two lithium-ion battery systems totaling 600 megawatts in the pre-construction phase, along with an experimental 10-megawatt iron-air energy storage system. A new transmission line called the Minnesota Energy Connection will deliver renewable energy across the region, designed to carry up to 4,000 megawatts of renewable capacity alongside 420 megawatts from a natural gas peaker plant for backup power.
Retirements of the coal units are proceeding on schedule, with Unit 2 already retired and Unit 1 expected to follow shortly, while Unit 3 is scheduled for decommissioning in 2030. The shift away from coal at Sherco reflects broader national trends documented by the Energy Information Administration. Data through May 2026 shows renewable energy sources accounted for over 30 percent of U.S. generating capacity during the first five months of the year, with utility-scale solar leading growth at 21.6 percent year-over-year. Coal capacity declined by 10.9 percent during the same period, significantly outpacing declines in other traditional energy sources and underscoring the financial advantages driving the energy transition nationwide.
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