Coal's Place Being Taken by Solar Energy and Batteries

In the US, a development has occurred with solar energy and batteries replacing coal. The massive Sherco coal plant in Minnesota has been transformed into the Sherco Energy Center, which now operates on solar energy and energy storage systems.

The Sherco coal plant was built in the 1970s with two units and completed in the 1980s with a third unit at a cost of approximately $1 billion. However, the third unit was taken offline after a malfunction in 2011 and restarted in 2013 at an additional cost of $200 million.

These significant costs led the company to decide to retire all its coal-operated units. Xcel Energy announced its first retirement schedule in 2015. At that time, solar energy costs were still high, but the lower cost of natural gas compared to coal and the rapid decline in solar energy costs influenced the company's decision.

Initially, a natural gas-powered plant was planned, but regulators and renewable energy advocates ensured that solar energy and energy storage systems were preferred. As a result, a 710-megawatt solar energy plant was built near the coal plant.

Xcel Energy has completed the first three phases of the solar energy plant, reaching a capacity of 710 megawatts. When the fourth phase is completed, the plant's total capacity will reach 910 megawatts, enabling it to power over 190,000 homes.

The company has already retired Sherco's second unit, and the retirement date for the first unit will be determined soon. The third unit will be taken offline in 2030.

The Sherco Energy Center, along with solar energy and energy storage systems, consists of two lithium-ion batteries with a total capacity of 600 megawatts, which are in the pre-construction approval phase.

Additionally, Xcel Energy began supporting a 10-megawatt iron-air energy storage project in 2024. This project was funded with $70 million from the US Department of Energy, but after Trump withdrew the funding, the project is now proceeding on its own.

Source: CleanTechnica