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Minnesota

Minnesota

Incentives/Policies for Renewables & Efficiency

Printable Version
Xcel Energy Wind and Biomass Generation Mandate   

Last DSIRE Review: 07/30/2013
Program Overview:
State: Minnesota
Incentive Type: Renewables Portfolio Standard
Eligible Renewable/Other Technologies: Wind, Biomass
Applicable Sectors: Investor-Owned Utility
Standard:825 MW wind; 110 MW biomass
Technology Minimum:825 MW wind; 110 MW biomass
Authority 1:
Date Enacted:
Date Effective:
Expiration Date:
Minn. Stat. ยง 216B.2423 et seq.
05/10/1994 (subsequently amended)
01/01/1995
12/31/2010
Summary:

Minnesota law (Minn. Stat. § 216B.2423) requires Xcel Energy to build or contract for 225 megawatts (MW) of installed wind-energy capacity in the state by December 31, 1998, and to build or contract for an additional 200 MW of installed capacity by December 31, 2002. The same statute also directed the Minnesota Public Utilities Commission (PUC) to require Xcel Energy to construct and operate, purchase or contract to purchase an additional 400 MW of installed wind-energy capacity by December 31, 2002, subject to resource planning and least-cost planning requirements. The total wind-energy capacity required under Minn. Stat. § 216B.2423 is 825 MW.

A separate law (Minn. Stat. § 216B.2424, also originally enacted in 1994) requires Xcel Energy to build or contract for 110 MW of electricity generated from biomass resources. The original requirement was for 50 MW by December 31, 1998 and an additional 75 MW by December 31, 2002, a total of 125 MW. The mandate was subsequently reduced to 110 MW in 2003. Additional sections of the law allocate the biomass requirement in various ways, imposing limits on the amount which may come from a single project, specific project, or fuel source.

This portion of the mandate is being fulfilled by district energy in St. Paul, a poultry-waste project in Benson, and a third biomass project in Virginia/Hibbing. In May 2008, the mandate was amended to confine the definition of eligible farm-grown, closed-loop biomass to herbaceous crops, trees, agricultural waste, and aquatic plant matter that is used to generate electricity and to specifically exclude mixed municipal solid waste from eligibility. A further amendment (S.F. 550) relating to revisions of one project's power purchase agreement was enacted in May 2009, but it left Xcel's obligations essentially unchanged.

The wind and biomass energy purchased or contracted for under this law is eligible to be folded into the state renewable portfolio standard (RPS), the mandatory portion of which will take effect during 2010 for Xcel Energy. In September 2010 the Minnesota Public Utilities Commission (PUC) determined (see PUC Order Docket E-002/M-08-440) that Xcel owns renewable energy credits (RECs) associated with wind and biomass contracts entered into under this mandate in cases where REC ownership is not addressed in the contract and a separate settlement has not been negotiated.


 
Contact:
  Energy Information Center
Minnesota Department of Commerce
Division of Energy Resources
85 7th Place East
Suite 500
St. Paul, MN 55101-2198
Phone: (800) 657-3710
Fax: (651) 297-7891
E-Mail: energy.info@state.mn.us
Web Site: http://www.energy.mn.gov
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.