Back/Otter Tail Power Expands Renewable Energy with New Solar Projects in Minnesota and North Dakota
energy·December 11, 2024·ottr

Otter Tail Power Expands Renewable Energy with New Solar Projects in Minnesota and North Dakota

ED
Editorial
Cashu Finance·2 min read
TL;DR
  • Otter Tail Power is adding two solar facilities to enhance renewable energy generation in Minnesota and North Dakota.
  • The Solway Solar facility will generate 50 MW, while Abercrombie Solar will produce 295 MW, supporting local economies.
  • By 2030, Otter Tail aims for 57% of its energy to come from renewable sources, promoting sustainability and cost-effectiveness.

Otter Tail Power Expands Renewable Energy Infrastructure

Otter Tail Power Company is making significant strides in enhancing its renewable energy generation capabilities with the addition of two new solar facilities: Solway Solar in Minnesota and Abercrombie Solar in North Dakota. These projects aim to meet the growing energy demands of customers while aligning with the company's commitment to sustainability and cost-effective energy solutions. The company has recently sought approval from the Minnesota Public Utilities Commission for cost recovery related to these solar initiatives, marking a crucial step in advancing their development.

The Solway Solar facility, designed to generate 50 megawatts (MW), is set to be located in Lammers Township and is projected to be operational by 2026. Over its 35-year lifespan, the project is anticipated to deliver approximately $4.2 million in local and state tax benefits and create around 70 construction jobs during its peak nine-month construction phase. In parallel, the Abercrombie Solar project, also known as the Flickertail Solar Project, will produce a substantial 295 MW in Abercrombie Township, North Dakota, with an expected completion date of 2028. This initiative is projected to yield $23.8 million in tax benefits and generate about 300 construction jobs at its peak, further supporting local economies.

Otter Tail Power's expansion is strategically aligned with its recently approved Minnesota Integrated Resource Plan, which projects that by 2030, 57% of its energy generation will come from renewable sources. President Tim Rogelstad underscores the critical role these solar facilities will play in delivering reliable and cost-effective electricity, leveraging existing transmission infrastructure to reduce customer costs. The company is diligently navigating the regulatory landscape in both states to finalize the project details, including facility sizes and capital investments, ensuring that they can meet customer needs while transitioning towards a greener energy future.

In addition to the economic and job creation benefits, these solar projects represent a significant investment in the future of energy in the region. By enhancing its renewable energy portfolio, Otter Tail Power positions itself as a leader in the shift towards sustainable energy practices in the Midwest. As the company progresses through the necessary approvals, it remains committed to providing affordable electricity while contributing positively to the environment and local communities.