Minnesotans could feel smug last week as President Trump told the nation's electrical utilities to disregard climate science and keep pumping carbon-emitting coal into their big generators. Thanks in part to more than 20 years of smart state policy, Minnesota's electricity providers could respond, "Uh, thanks, Mr. President, but we're not much into coal anymore. And we're not going back."
For example: Xcel Energy, the state's biggest supplier, is investing so heavily in non-coal generation that by 2021, 60 percent of its power production will come from carbon-free sources. Wind will produce more than half of that total, Xcel regional vice president Laura McCarten advised, with hydro, nuclear and fast-growing solar generation accounting for the rest. Two of Xcel's coal-burning units have been shut down as wind power ramped up, McCarten said.
It would be a stretch to credit state government policies entirely for that change. It would be a mistake to discount them entirely.
It mattered that in 1994, the Legislature made acquisition of renewable-source generation capacity a condition for approval of additional nuclear waste storage at Xcel's Prairie Island plant. That jump-started the region's wind-power push before wind was economically competitive.
It mattered again when, in 2007, a Republican governor and DFL-controlled Legislature collaborated to set in law what was then one of the nation's most aggressive mandates for regulated utilities: 25 percent of their supply is to come from renewable sources by 2025.
That move sent a positive signal to the marketplace about investing in renewable energy, said Gregg Mast of Clean Energy Economy Minnesota. Wind turbine and transmission technology improved, making them more efficient. The cost of wind-produced electricity fell dramatically, dropping below fossil fuels to become the least expensive way to generate electricity last year.
That economic advantage plus the availability of a federal production tax credit through 2019 for wind power facilities has caused a bumper crop of turbines to rise in rural fields in this and other states. At a time when other crops in Greater Minnesota aren't so lucrative, lease payments of between $6,000 and $8,000 per year per turbine provide rural landowners with a welcome income stream.
Wind's economic power is in turn stabilizing small towns near windy Buffalo Ridge in southwestern Minnesota, said state Rep. Joe Schomacker, R-Luverne.