Otter Tail Power To Expand Clean Energy Portfolio With 345 MW Solar Project

December 10, 2024

Representational image. Credit: Canva

Otter Tail Power Company, a subsidiary of Otter Tail Corporation, is planning to expand its energy generation by adding two solar power facilities. These new facilities, Solway Solar and Abercrombie Solar, are part of the company’s efforts to meet future energy demands. On December 9, 2024, the company filed a request with the Minnesota Public Utilities Commission to confirm that the costs for these projects can be recovered.

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Tim Rogelstad, Otter Tail Power President, stated, “These economic solar facilities fit the requirements of our recently approved Minnesota Integrated Resource Plan. Combined with our existing low-cost generation resources, they’ll help us continue to provide cost-effective, reliable electricity to our customers.”

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Solway Solar is a planned 50-megawatt (MW) solar power facility that Otter Tail Power Company intends to build in Lammers Township, near Solway, Minnesota. The project is expected to be fully operational by 2026, depending on approval timelines. According to Rogelstad, the location is ideal because it already has transmission interconnection facilities, which helps keep costs down for customers. Otter Tail Power projects $4.2 million in local and state tax benefits over the facility’s 35-year lifespan. The project will also create around 70 construction jobs during the peak of its 9-month construction period.

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Abercrombie Solar, also known as the Flickertail Solar Project, is a 295-megawatt (MW) solar power facility being developed in Abercrombie Township, northwest of Wahpeton, North Dakota. Otter Tail Power has reached an agreement with Flickertail Solar Project, LLC to purchase the development assets, with plans to build the facility once necessary permits, approvals, and requirements are met.

Rogelstad also mentioned, “We’re looking forward to adding this significant energy resource that’s cost effective for our customers.” The project is expected to be completed by 2028, and Otter Tail Power anticipates $23.8 million in local and state tax benefits over its 35-year lifespan. During peak construction, the project is expected to create around 300 jobs.

Otter Tail Power’s Integrated Resource Plan details the resources the company will use to meet customers’ energy needs over the next 15 years. “We expect that 57 percent of our energy generation will come from renewable resources by 2030, while ensuring electric service continues to be safe, reliable, and economical,” stated Rogelstad. The company is following the required regulatory processes in each state it serves to finalize the sizes of its facilities, total investments, and how the costs and benefits of these projects will be distributed among customers.

 

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