Minnesota Power has become the first Minnesota utility to deliver 50% renewable energy to customers, bringing the company closer to its energy mix goal of two-thirds renewable energy and natural gas, and one-third “environmentally compliant” coal, the company said Wednesday.
The company reached the milestone when its Nobles 2 wind project in southwestern Minnesota came online this month. Through its EnergyForward strategy, Minnesota Power aims to transition to cleaner sources of energy while still providing affordable electricity.
Under its strategy, Minnesota Power has effectively halved its carbon emissions since 2005, adding almost 900 MW of wind energy capacity into its energy mix. It plans to increase its solar energy capacity in 2021 to 31 MW from 11 MW, and retire or idle seven of its nine coal-fired generators.
Minnesota Power is among several utilities in the region owned by ALLETE Inc. The wind farm is owned by Nobles 2 Power Partners LLC, comprising affiliates of ALLETE subsidiary Tenaska and Bright Canyon Energy. The wind farm will provide renewable energy to Minnesota Power under a 20-year power purchase agreement.
With Nobles 2 operational the company's wind portfolio has grown to about 870 MW of owned and contracted capacity. The project adds to Minnesota Power’s geographical diversity, as it also has power assets in North Dakota.
“This is an important milestone in our clean energy transformation from relying almost completely on coal to delivering 50% renewable energy, accomplished while keeping our residential rates the lowest in the state of Minnesota and improving the reliability of our system,” said ALLETE CEO Bethany Owen. “We are proud of how far we have come in this transformation, but we know we have more work to do.”
Minnesota Power in February is scheduled to submit its next biennial integrated resource plan to the Minnesota Public Utilities Commission, said Minnesota Power’s Julie Pierce, vice president of strategy and planning.
“That plan will outline scenarios for the thoughtful transition of our coal units at Boswell 3 and 4, the next steps for the transition to even more renewable energy, and more investments in the grid to enhance reliability, all while working to ensure affordability, the health of our communities, and opportunities for our employees,” Pierce said.
