Xcel Energy has broken ground on two major infrastructure projects in southwest Minnesota that are designed to support reliable, affordable electricity while helping advance the state’s transition to cleaner energy.

The projects — the 185-mile Minnesota Energy Connection transmission line and the 420-MW Lyon County Generating Station — are designed to address two needs: moving renewable energy from where it is generated to where it is needed and providing reliable electricity when demand is high or renewable generation is limited.

The Minnesota Energy Connection will connect up to 4,000 MW of new wind and solar generation in southwest Minnesota to the grid at the Sherco Energy Hub in Becker.

The Lyon County Generating Station, located in Garvin in Lyon County, will be a natural gas peaking plant providing always-available generation during periods of peak demand, extreme weather and lower renewable energy production.

“These projects represent the next chapter in Minnesota’s energy transition,” said Bria Shea, president of Xcel Energy–Minnesota, North Dakota and South Dakota. “As we retire coal generation and add more renewable energy, Xcel Energy is investing in the infrastructure needed to deliver reliable electricity our customers depend on and keep bills as low as possible. The Minnesota Energy Connection and Lyon County Generating Station are real-world examples of how utility companies can strike that balance.”

The projects will create an energy hub in southwest Minnesota, where wind and solar generation continues to expand. The transmission line will provide access to new renewable resources, while the generating station will provide flexible generation to support those resources and maintain dependable service.

“Building a cleaner energy future requires both generation and the transmission infrastructure to move that energy where it’s needed,” said Sandra Johnson, senior vice president of transmission at Xcel Energy. “The Minnesota Energy Connection will connect thousands of megawatts of new renewable energy to the grid, while the Lyon County Generating Station provides the reliability needed to support that transition. Together, the projects create a more flexible and resilient grid for customers across the Upper Midwest.”

Both projects are expected to be completed in 2028.

The projects also are expected to provide economic benefits to southwest Minnesota. Construction is expected to support hundreds of jobs, while the Lyon County Generating Station is expected to generate approximately $300 million in property tax revenue over its operating life for local governments, schools and public services.