Xcel proposes $430M distributed battery network
Xcel Energy filed with the Minnesota Public Utilities Commission to recover costs for a new distributed battery program, Capacity*Connect, that would deploy dozens of 1–3 MW batteries at commercial sites statewide and scale to 50–200 MW by 2028, forming a utility‑controlled virtual power plant. Xcel says the plan will bolster reliability and help meet the 2040 carbon‑free mandate while shifting purchases to lower‑cost periods, but watchdogs question the value for ratepayers and note Xcel’s Colorado virtual power plant is far cheaper per megawatt and includes broader customer‑side resources.
đź“Ś Key Facts
- Xcel seeks PUC approval to recover eligible program costs; estimated up to $430 million over three years.
- Capacity*Connect would start with utility‑owned batteries (1–3 MW each) at commercial sites, scaling to 50–200 MW by 2028.
- Critics cite Xcel’s own analysis showing benefits slightly below costs and point to a lower‑cost Colorado VPP as a model.