Minnesota’s First Stand-Alone Battery Energy Storage Project Approved

Summary

The Minnesota PUC officially approved the site permit for the Snowshoe Energy Storage Project, known as "Snowshoe Bess." It is the first stand-alone battery energy storage system (BESS) permitted in the state.

Overview

The Minnesota Public Utilities Commission (PUC) has officially approved the site permit for the Snowshoe Energy Storage Project. It is the first stand-alone battery energy storage system (BESS) permitted in the state. “Snowshoe Bess” will be located in Kalmar Township, Olmsted County. It lies between Byron and Rochester. According to the PUC, The project aims to bolster Minnesota’s clean energy infrastructure with enhanced grid flexibility and reliability.

Project Highlights

• Capacity & Scope: The facility reportedly features a 150 MW alternating current battery system. It will have approximately 600 MWh energy capacity. The system is situated on roughly 23–28 acres of land in Olmstead County.
• Cost & Operations: Estimated project cost reportedly ranges between $214 million and $255 million, with operating expenses around $8.2 million annually. Lifetime expenses, including decommissioning, could total approximately $457 million.
• Timeline: Construction is slated to start in early 2027. Operations will commence by late 2027. This is according to a Minnesota Department of Commerce Environmental Assessment.
• Revenue & Benefits: According to PV Magazine, the project is expected to generate approximately $18,700 annually in property tax revenue.

Strategic and Regulatory Significance

• According to reports, this marks the first stand-alone BESS in Minnesota to connect directly to the grid. It is untied to any generation facility.
• Snowshoe BESS enables storage of excess electricity for up to four hours. It reportedly will aid in balancing supply and demand. It will smooth fluctuations from variable renewable sources.
• According to reports, the system will integrate with the Maple Leaf substation. It is operated by the Southern Minnesota Municipal Power Agency (SMMPA). This integration enhances voltage and frequency stability.

Local Government Engagement & Safety Provisions

In response to stakeholder feedback, the PUC has embedded critical requirements aimed at enhancing public safety and emergency preparedness, all to be funded by the developer, Snowshoe BESS, LLC (a Spearmint Energy subsidiary):

1. Water Main Extension Report — Collaborate with local governments to assess necessary water service expansions.
2. Emergency Equipment Acquisition Plan — Coordinate with first responders to procure needed specialized tools.
3. Training for First Responders — Provide local emergency personnel with relevant training at the permittee’s expense.

Why This Matters to Local Governments

• Precedent Setting: Snowshoe is the first of its kind. It sets a template for future energy storage projects. This underscores the need for clear frameworks around safety and intergovernmental coordination.
• Community Benefits: The tax revenues, grid resiliency, and infrastructure planning hold meaningful value for rural and semi-urban municipalities.
• Enforceable Conditions: The permit’s conditional safety provisions empower local governments through enforceable expectations that prioritize community well-being.

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Conclusion

The PUC’s approval of the Snowshoe Energy Storage Project is a milestone for Minnesota’s clean energy transition. It is also important for the evolving practice of siting standalone battery systems.

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Bradley Werner, LLC

Michael Bradley and Nancy Werner are nationally recognized and respected local government attorneys. Our firm is dedicated to representing local governments on broadband, cable, telecommunications, utilities, and right-of-way management issues. Our firm has decades of experience representing municipalities on communications and utilities matters.