Xcel Energy Awarded $20 Million Grant For Battery Storage System

(KNSI) – Xcel Energy says it is getting a $20 million grant to help install two electricity storage systems, with one of those expected to be housed at the SherCo Plant in Becker.

Each Form Energy iron-air battery is capable of holding up to 1,000 megawatt-hours of capacity. That’s equivalent to the average daily energy use of between 30,000 and 40,000 homes in Minnesota. It could be tapped at times when demand is high but renewable energy sources like wind and solar are not producing power when the weather is calm or at night. Form Energy’s iron-air systems can hold power in reserve for up to 100 hours while operating at a cost that’s close to that of a normal plant.

Xcel Energy will be decommissioning the Sherco Plant’s coal operations over several years. It hopes to offset the loss in production capacity by building the state’s largest solar farm at the site and also connecting the area to renewable energy production near Duluth and windmills in the gusty southwest part of the state. High-capacity transmission lines are planned which will hook into SherCo’s connection to the overall grid.

The award comes from Breakthrough Energy Catalyst, which focuses on funding innovative green energy technology. The group is funded by a coalition of Fortune 500 companies and government sources. Manufacturers like General Motors, financial firms like Bank of America and Citibank, even State Farm Insurance are all included. The European Union, United Kingdom, and United States governments all chip in as well. The group is part of billionaire Bill Gates’ nonprofit empire.

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