By 2030, the company aims to close the final coal plant in the region, the Sherco 3 plant, after closing down the Allen S. King coal plant in 2028
Image: Xcel Energy to stop using coal by 2030. Photo: Courtesy of Ben Scherjon/Pixabay.
Minnesota-based energy company Xcel Energy announced its plans to retire its last two coal plants in the Upper Midwest a decade before the scheduled closure.
Xcel Energy stated that this closure will be a milestone towards its clean energy transition, which includes the expansion towards wind and solar and also using cleaner natural gas.
The plan will outline the path that Xcel Energy aims to take to ensure reliability of energy is maintained, while the costs are also kept low for customers. As part of the plan, the company has agreed with environmental and labor organisations on key elements of the plan relating to its coal, solar and natural gas plans.
Xcel Energy Minnesota, North Dakota, South Dakota president Chris Clark said: “This is a significant step forward as we are on track to reduce carbon emissions more than 80% by 2030 and transform the way we deliver energy to our customers.
“Accelerating the closure of our coal plants and leading this clean energy transition would not be possible without the dedication and support of our key stakeholders. We thank them for their work to put us on a path to deliver 100% carbon-free electricity by 2050.”
Xcel Energy to submit closure plans for approval in July
Part of the proposed Upper Midwest Energy Plan, the company will submit its plans to the Minnesota Public Utilities Commission in July. If approved, the plan is claimed to lead to more than 80% reduction in carbon emissions in the region by 2030, compared to 2005 levels. And, it will generate 100% carbon-free electricity for its customers by 2050.
The plan includes key milestones which Xcel Energy aims to achieve. By 2022, it plans to add 1.8GW of wind, which will be more than 30% of its energy needs in the region.
By 2030, it aims to close the final coal plant in the region, the Sherco 3 plant, after closing down the Allen S. King coal plant in 2028. With this about 50% of the region’s energy will be generated through renewables.