South Dakota group bids 400 MW into Xcel’s wind RFP

Dakota Power Community Wind, which has a wind energy project of up to 1,000 MW located in southeast South Dakota, announced Nov. 16 that it has partnered with a Fortune 500 company to respond to Xcel Energy‘s (NYSE: XEL) request for proposal for 1,500 MW of wind energy.

Dakota Power has proposed supplying 400 MW. Xcel recently announced plans to expand wind power and increase wind generation capacity in the Midwest by 60%. It plans to add eight to 10 wind farms that will provide about 1,500 MW.

“We are excited to represent South Dakota in this request for proposal. Wind energy is crucial to South Dakota’s economic landscape. We believe that this project will open many other opportunities, increasing renewable energy projects in South Dakota, said Paul Shubeck, President of the Board of Directors of Dakota Power Community Wind. “The project in southeast South Dakota plans to use the most efficient wind farm footprint while reducing uncertainty, mitigating risk & maximizing the return on investment. The potential for increased tax revenue is very important to our rural and urban communities and South Dakotans will be able to utilize the energy in their own homes.”

The company noted that in a 12-month period through July 2016, South Dakota generated 26.9% of its electricity from wind power, the third highest in the nation.

Dakota Power Community Wind was established in 2013 and is owned by over 170 South Dakota residents, 90 of which reside in Lincoln County. Seven meteorological towers have been collecting data and the footprint of the project is now situated in southern Lincoln County. All required federal and state environmental studies have either been completed or are underway with favorable results. An area in southeast South Dakota was identified as likely possessing some of the nation’s finest wind resources. The board of Dakota Power Community Wind has begun preliminary action on a wind project of up to 1,000 MW. The company has gathered enough land to support a 400-MW wind farm.

Xcel Energy announced Sept. 22 that it is seeking proposals to dramatically grow its wind energy portfolio by up to 1,500 MW. The request for proposals (RFP) from Xcel utility Northern States Power (NSP) calls for companies to respond by Oct. 25. The RFP is an outgrowth of the utility’s 2016-2030 Upper Midwest Resource Plan. The plan envisions the Xcel Energy company slashing CO2 emissions and adding up to 1,500 MW of new wind between 2018 and 2020.

Proposals can be a mix of power purchase agreements and projects purchased from developers. Here are some key details:

  • Projects must interconnect to Minnesota, North Dakota, South Dakota, Wisconsin and Michigan;
  • Projects must be at least 75 MW;
  • Bidders are responsible for all transmission interconnection and system upgrades required by the Midcontinent Independent System Operator (MISO); and;
  • Xcel Energy expects to file for regulatory approval of selected projects in spring 2017. The company is seeking resources that would come online by the end of 2020.
About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.