HERMANTOWN — Federal and state officials and energy leaders gathered Wednesday, Oct. 9, at Minnesota Power’s Arrowhead Substation in Hermantown to celebrate progress on a major electric grid upgrade.
The upgrade, according to the Minnesota Department of Commerce, will increase the capacity and resilience of the electric grid "to deliver reliable, affordable, safe, and increasingly clean energy to Minnesota homes, businesses, and communities."
U.S. Department of Energy Under Secretary for Infrastructure David Crane, U.S. Senator Tina Smith, D-Minnesota, and Minnesota Commerce Deputy of Energy Resources Pete Wyckoff joined the celebration hosted by Minnesota Power. It brought together multiple partners for the first time to recognize key milestones for Minnesota Power’s high-voltage, direct-current transmission system, or HVDC, terminal expansion capability project.
According to officials, milestones include $50 million in federal funding from the U.S. Department of Energy; $25 million in state funding, including $10 million in matching funds from the State Competitiveness Fund; and approval by the Minnesota Public Utilities Commission on Aug. 2 for the project.
Minnesota Power’s HVDC transmission line is one of only a handful of existing HVDC lines in the country. These types of lines transmit electricity more efficiently over long distances than alternating current lines, according to the state.
As part of the HVDC modernization project, aging converter facilities at the Arrowhead Substation in Hermantown will be replaced with new buildings near the existing terminal and electrical infrastructure. These upgrades will significantly expand capacity, from 900 megawatts up to 1,500 megawatts, and improve reliability, the partners stated.
"Upgrades to the electric grid are critical to expand Minnesota’s high-voltage transmission system — the electric energy highways of the state — as Minnesota transitions from fossil fuels to carbon-free energy sources such as wind and solar power," the release stated.
Crane reported that 47 energy projects have been selected in Minnesota to receive up to $2.1 billion in federal investment from the Department of Energy.
"Funded by the Bipartisan Infrastructure Law and Inflation Reduction Act, these projects include $50 million in support of Allete and Minnesota Power's efforts to increase capacity to prepare the state's grid for future expansion and greater clean, affordable energy," he stated. "I'm proud of the partnerships we're building in Minnesota to make this project successful as we work together to build a brighter, cleaner future in the North Star state for all Minnesotans.”
Smith stated that modernizing the electric grid is a win for the environment and Minnesotans who will benefit from more affordable, reliable clean energy.
“I am proud to help deliver these federal investments and look forward to seeing how these improvements help Minnesota achieve its clean energy goals while creating jobs and preserving grid reliability," Smith stated in the release.
Bethany Owen, chair and CEO of ALLETE, parent company of Minnesota Power, said expanding and strengthening the electric grid are critical as demand for energy increases and more renewable resources are added to the nation's energy mix.
“Investing in Minnesota Power’s strategically located HVDC transmission system supports federal and state energy policy goals, prepares the regional grid for the efficient delivery of more energy from where it’s generated to where it’s needed, and moves us closer to the sustainable clean-energy future where every community can thrive," Owen stated. "Achieving that goal will take all of us working together, and this project is an outstanding example of that.”
Other leaders at the celebration included state Sen. Grant Hauschild, DFL-Hermantown, Minnesota Public Utilities Commission Chair Katie Sieben and Josh Skelton, Minnesota Power chief operating officer.