Minnesota's energy consumption

Summary: As of 2022, Minnesota ranked nineteenth among US states in energy consumption per capita. Its total energy production ranked thirty-second. It remains heavily reliant on fossil fuels (despite having no domestic production) and nuclear power; the state has also made a significant commitment to renewable energy.

Minnesota neither produces nor stores fossil fuels, though it has the largest oil refinery in a non-oil producing state. Prior to the 2020s, the state relied on coal-fired power plants, which created about 40 percent of the state's electric power generation in 2016. However, by 2023, the state had made a successful transition toward renewable energy, with hydroelectric power, biomass, solar, wind, and geothermal power accounting for the majority (31 percent) of Minnesota's electricity generation. About 27 percent of the state's electricity was generated by coal. Power plants using natural gas produced 18 percent of the state's energy; natural gas also heated about two-thirds of residential households in the state, while the industrial sector accounts for over a third of the state's total gas consumption, which is its overall largest energy source. Minnesota’s two nuclear power plants generated 24 percent of the state’s electricity. The rest of electricity generation comes from hydroelectric power, biomass, solar, wind, and geothermal power.

Minnesota has considerable potential to further develop its renewable energy resources for electricity generation. In particular, the state's abundance of wind is attractive to power development. In 2022, Minnesota produced over 14.27 terawatt-hours of wind energy, placing it tenth among US states.

Minnesota’s high-voltage electricity grid is tied to the grids of the upper Midwest and eastern United States. Originally intended to provide power to the Twin Cities (Minneapolis and St. Paul) and other major Minnesota cities and to tie the state’s various electrical utilities together to guarantee reliable power delivery, the grid links producers, utilities, and agricultural, residential, and commercial consumers through substations and distribution systems. In 2001, Minnesota mandated that each utility with a transmission capability file transmission planning reports biennially with the Minnesota Public Utilities Commission (PUC). The reports provide data on utility planning for the state. A new rule in 2003 required that the reports include public input and required public meetings in seven zones of the state.

Minnesota required Xcel, a major utility in the state, to get 30 percent of its electricity from renewable sources by 2020, including at least 25 percent from wind. All utilities had a requirement of 25 percent of electricity supply from renewable energy by 2025. Minnesota accomplished those goals, with 31 percent of its energy coming from renewable sources, including 24 percent from wind power.

Energy Initiatives

Minnesota’s energy efficiency efforts include conservation and efficiency provisions in building codes and in industrial plants, weatherization, and education. Minnesota’s renewable energy includes hydropower, biomass, and wind. Tribal projects are green as well. Furthermore, efforts are under way to promote hybrid vehicles and other green transportation. XCel has a renewable development fund. Rebates are available for grid-connected solar photovoltaic systems.

Minnesota enforces the 1995 Model Energy Code for residential buildings and the American Society of Heating, Refrigerating and Air-Conditioning Engineers’ standard 90.1-1989 for commercial buildings. Four programs provide loans for energy efficiency. The Xcel Energy Renewable Development Fund collects customer user fees and uses the money to fund renewable energy projects. All state-owned buildings have to improve energy efficiency 10 percent over the 2006 baseline. New construction had to consider solar and geothermal options and new buildings had to exceed the state energy code by at least 30 percent.

In 2009, Minnesota began installing a smart grid in some substations in the hope of reducing demand by 20 percent, as was the case in some West Coast areas. After Xcel installed the first major smart-grid system in Boulder, Colorado, the company not only learned immediately of outages but also could repair them automatically. The data supplied by smart grids also helped both the utility and consumers to learn ways of conserving energy. Reducing demand is much cheaper than building new lines to match demand. Therefore, the federal government wanted states to require at least consideration of the smart grid before construction of large plants or lines, including CapX 2020, which involved four major power lines across the state.

Ethanol and Biodiesel

Transportation was Minnesota’s second leading consumer of energy, after industry. Minnesota led the way in requiring ethanol in all oxygenated motor gasoline, becoming the national pilot market for ethanol use in 1998. Minnesota allowed its gasoline to contain up to 12.4 percent ethanol in 2021, the highest rate in the United States. The state had the largest ethanol fueling network in the United States, as well as thousands of flex-fuel vehicles and multiple ethanol production facilities.

Minnesota is consistently ranked one of the top five states in total ethanol production. It has also increased production of biodiesel and enacted regulations requiring all diesel fuel sold in-state to contain a percentage of biodiesel. According to this mandate, the summer blend of diesel must contain at least 10 percent biodiesel, while the winter blend required at least 5 percent. In 2025, Minnesota was one of eight states that the federal government allowed to sell higher ethanol-content gasoline year round.

Solar Energy and Wind Power

Minnesota had a small but growing solar power industry. According to the state's renewable energy standard (RPS) goals, 10 percent of retail sales of electricity in the state was slated to come from solar by 2030. By 2022, 4 percent of electricity was generated by solar power.

In March 2011, the St. Paul convention center’s rooftop solar collectors began producing energy for local businesses and residences. The project included 144 solar collectors that provide up to 1 megawatt of thermal capacity to District Energy St. Paul, the largest hot water district heating system in the United States that heats 80 percent of downtown St. Paul from a 25 megawatt biomass combined heat and power plant. Maximum water temperature for the building is set at 160 degrees Fahrenheit, and surplus water enters the district heating system at up to 195 degrees. The system aimed to reduce the state’s carbon footprint by 900,000 pounds per year, the equivalent of 90 vehicles. Funding came from the Department of Energy’s Solar America Communities program to the tune of $1 million in American Recovery and Reinvestment Act funds. Matching funds came from District Energy St. Paul.

Minnesota is a leading state in the generation of electricity from wind power, with many wind farms taking advantage of favorable conditions. In 2024, a quarter of the state's electrical power came from wind. Minnesota consistently ranks among the top ten states in total wind power generation and installed capacity.

Bibliography

"Minnesota." US Energy Information Administration, 17 Aug. 2023, www.eia.gov/state/?sid=MN. Accessed 6 Aug. 2024.

"Minnesota Biennial Transmission Planning." Minnesota Electric Transmission Planning, www.minnelectrans.com. Accessed 6 Aug. 2024.

"Wind Energy in Minnesota." WINDExchange, 2023, windexchange.energy.gov/states/mn. Accessed 6 Aug. 2024.