Go to main contentsGo to main menu
Thursday, September 25, 2025 at 7:22 AM

Xcel’s generation station project right around the Hwys. 59/14 corner

While the Box Car Wind project has stolen most of the local renewable energy headlines over the last few years as it moves toward breaking ground on its wind energy project, there is another major plan in the works right outside of Garvin.

That would be Xcel Energy’s Lyon County Generation Station, which includes two natural gas-fired 210-megawatt combustion turbines, a pair of 345-kilovolt transmission lines with a combined length of about 4,300 feet, and an approximately 965-foot natural gas pipeline (690 feet will be owned by Xcel and 275 feet will be owned by Northern Border) consisting of about 700 feet of 12inch natural gas pipeline and two 8-inch pipeline branches fed from an existing 42inch Northern Border national gas pipeline.

The station will connect to the proposed Minnesota Energy Connection transmission line, which will run from the existing Sherburne County Generating Station (Sherco) site near Becker to the new Garvin substation in Lyon County.

The Minnesota Public Utilities Commission on Aug. 11 hosted a public meeting for stakeholders to comment on the scope of the Lyon County Generating Station’s Environmental Impact Statement.

The onside operations facilities include a control room and pump building, a 9.9 million British thermal unites per hour water bath heater, a 350-horsepower emergency diesel fire pump, two demineralized water storage tanks and three 750 kilowatt backup diesel generators with associated belly tanks.

The footprint of the proposal is about 30 acres within a larger 155-acre site owned by Xcel Energy, about 1 mile north of Garvin. The purpose of the plant is to back up the wind towers at times when they’re not producing energy.

“This plant has got to run to keep the grid reliable,” said Jared Graham, the plant director of the Lyon County generating station. “It’s about reliability and ensuring we continue to serve our customers. When the sun sets, these (turbines) can respond and ramp up quickly to keep power generation consistent.”

Given the PUC gives its stamp of approval, the estimated start of construction is July 2026, with commercial operation estimated to be December 2028.

In 2021, the PUC approved Xcel Energy’s plan to retire all coal power plant operations in the region and add significant amounts of new renewable energy. The plan included adding 800 MW of always available “firm dispatchable energy” to be called on when wind and solar are not available, and in times of peak demand on the hottest and coldest days.

The MPUC directed Xcel Energy and other stakeholders to evaluate options, including natural gas, battery storage, and other technologies, and propose a plan to best meet the firm dispatchable energy needs. Xcel Energy, the Minnesota Department of Commerce, clean energy organizations, labor unions and energy developers participated in the review, which considered electric system planning, project costs, the environment, public involvement, regulatory issues, existing and planned land use, land rights and engineering considerations to arrive at the most promising combination of projects.

The review, which was overseen by an Administrative Law Judge resulted in the approval of several projects, including the MPUC’s directive to Xcel Energy to propose the Lyon County Generating Station through its formal Certificate of Need and Site Permit process.

Graham said judging from the feedback the project has gotten from locals, most understand and appreciate the project’s goal of reliable energy.

“I think they understand that there are intermittent resources in wind and solar and that we’ve got to have something to back that up,” he said. “And this backs it up.”

Graham said at the peak of construction, there will be approximately 200 workers on site.

“You’re going to see equipment deliveries primarily in 2027 and some in 2028,” he said. “Next year, you’ll mostly see earthwork — rough grading, underground utilities, foundations. In ’27, you’ll see things start to come out of the ground for construction.”

Xcel estimates that approximately $300 million in local tax revenue from renewable energy and natural gas plant operations will be received by the county over the 40-year life of the project.


Share
Rate

Tracy Area Headlight Herald
Borth Memorials
Murrayland Agency