Minnesota PUC Approves Xcel’s 200 MW Battery Program
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- Minnesota Public Utilities Commission approved Xcel Energy’s utility‑owned 200 MW distributed battery program, called Capacity*Connect, on April 2 2026.
- Xcel Energy will deploy up to 200 MW of battery storage across its distribution grid by 2028, with individual units sized 1‑3 MW.
- Sparkfund will work with Xcel Energy to install the batteries at strategic locations such as local businesses and nonprofits.
- Capacity*Connect has a full‑capacity budget of $430 million, and the PUC will receive regular status reports and an independent evaluation.
- Fresh Energy praised the plan for allowing small and diverse business owners to bid on contracts and for offsetting fossil‑fuel infrastructure investment.
- Solar Energy Industries Association and the Coalition for Community Solar Access called the approval a missed opportunity, arguing the utility‑owned model forces ratepayers to bear investment risk instead of leveraging private capital.
Why it matters: Ratepayers and Minnesota communities gain new grid reliability and job opportunities, while independent developers lose a chance to compete for storage contracts, as the utility‑owned model shifts investment risk onto customers rather than private capital.
