By Grace Jacobson / News Director

MINNEAPOLIS, Minn. — Xcel Energy announced Thursday they retired one of the three coal units at Sherco over the weekend, marking a major step toward the company’s goal of delivering 100% carbon-free electricity in Minnesota by 2040.

Part of that 2040 goal is building the largest solar facility in the Midwest.

Construction on the Sherco Solar project is currently underway adjacent to the Sherco site. Once complete, the combined 710 megawatts will generate enough electricity to power more than 150,000 homes each year on average and fully replace the capacity of the coal-fired Unit 2 that retired Dec. 31.

Xcel Energy says the infrastructure at the Sherco site will be reused. Sherco Unit 2 will become a synchronous condenser, a piece of equipment that manages system stability as renewable energy increases, providing reliable electricity for customers.

Xcel Energy plans to retire Sherco’s remaining coal-fired units in 2026 and 2030. And: They plan to transition Sherco without layoffs