Xcel is pitching a $430M plan to place dozens of utility-owned batteries at commercial sites across Minnesota, creating a 50–200 MW VPP. (Minnesota Reformer)
Watchdogs say the idea has merit but the numbers don’t. Xcel’s own analysis shows benefits falling short of costs. Its Colorado division built a larger, more flexible VPP for less than one-third the per-MW cost using competitive aggregators and customer-owned devices that Minnesota’s proposal sidelines.
Lawmakers may force the issue. A bill would require utilities to cut peak load 10% through open, multi-aggregator VPPs, forcing Minnesota to choose between a utility-centric rollout or a more competitive model that scales faster and shares more value with customers.