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The Minnesota Public Utilities Commission granted the Certificate of Need and Route Permit for the HVDC transmission project by Minnesota Power, aimed at boosting reliability, resiliency and supporting a clean energy future.
Minnesota Power intends to upgrade and replace the aging infrastructure of its 465-mile HVDC line, which extends from Center, North Dakota, to Hermantown.
Josh Skelton, Chief Operating Officer of Minnesota Power, emphasized the importance of grid reliability and resiliency, especially as more carbon-free energy sources are integrated and extreme weather events become more frequent.
"This investment is a key part of our EnergyForward strategy for a carbon-free future, utilizing existing assets in a cost-effective manner to ensure the safe and reliable delivery of energy in the Upper Midwest," he said. The project has been acknowledged by the commissioners for its significance.
In Minnesota, the project will involve replacing outdated converter facilities at the Arrowhead Substation in Hermantown with new buildings equipped with cutting-edge technology, close to the current terminal. It also includes the construction of two short transmission lines to connect the new converter station to the existing electrical grid. Similar updates are planned for the Square Butte East Substation in Center. The estimated cost of the project is up to $940 million.
The construction is set to commence this year, with the upgrades expected to be operational between 2028 and 2030. These approvals come after the October 2023 announcement of a $50 million grant from the U.S. Department of Energy for Minnesota Power's HVDC Terminal Expansion Capability Project.