Two connected infrastructure projects in southwest Minnesota broke ground August 3, designed to move new renewable power onto the grid and keep electricity reliable when that output drops. The Minnesota Energy Connection transmission line and the Lyon County Generating Station, both sited near Garvin in Lyon County, are being built by Xcel Energy to work as a pair — one moving power, the other backing it up.

Linking Renewables to the Grid

The Minnesota Energy Connection is an 185-mile transmission line that will connect up to 4,000 megawatts of new wind and solar generation in southwest Minnesota to the Sherco Energy Hub in Becker. Xcel says the line addresses a bottleneck common to renewable buildout: generation capacity often outpaces the transmission infrastructure needed to carry it to customers.

Paired with the line is the Lyon County Generating Station, a 420-megawatt natural gas peaking plant built to supply power during periods of high demand, extreme weather or low renewable output. Together, the two projects create a major energy hub in southwest Minnesota, giving Xcel both the capacity to bring more renewables online and the flexibility to keep the lights on when those renewables underperform.

Reliability as Coal Retires

Xcel Energy–Minnesota, North Dakota and South Dakota president Bria Shea said the projects reflect the balance the utility is trying to strike as it retires coal generation and adds renewable capacity, framing the investment as necessary infrastructure to keep electricity reliable and bills as low as possible for customers. Senior vice president of transmission Sandra Johnson added that the two projects rely on each other: the line unlocks new renewable resources, while the plant provides the always-available backup those resources need to maintain dependable service.

Both projects are expected to be completed in 2028.

Economic Impact

Construction will support hundreds of jobs in southwest Minnesota. Over its operating life, the Lyon County Generating Station will generate approximately $300 million in property tax revenue, funding local governments, schools, and public services across the region.

The approach echoes a strategy underway just across the border: We Energies recently broke ground on three Wisconsin renewable projects — solar, wind and battery storage — that similarly pair new generation with the reliability infrastructure needed to support it, part of a broader Upper Midwest pattern of utilities balancing clean energy growth with dispatchable backup.

At a Glance

• Minnesota Energy Connection: 185-mile transmission line, connects up to 4,000 MW of new wind/solar to the Sherco Energy Hub
• Lyon County Generating Station: 420 MW natural gas peaking plant, Lyon County
• Location: Garvin, Lyon County, Minnesota
• Completion: expected 2028
• Jobs: hundreds during construction
• Economic impact: ~$300 million in property tax revenue over the plant’s operating life
• Utility: Xcel Energy