Renewable energy became the largest source of electricity in Minnesota in 2020 at 29%, BloombergNEF reported last week. At the same time, the share of zero-carbon electricity (renewables and nuclear) increased to 55% from 48% in 2019.

A host of business leaders and state officials tuned in to a forum by Clean Energy Economy Minnesota (CEEM) and the Business Council for Sustainable Energy Thursday for the release of BloombergNEF’s 2021 Minnesota Energy Factsheet, praising Minnesota’s progress despite the disruption of the COVID-19 pandemic.

The state added 588 MW of renewable power in 2020, including the 250-MW Nobles 2 Wind Project and more than 100 small-scale wind and solar plants.

“Last year’s addition of new wind and solar capacity shows how Minnesota’s clean energy transition is happening in real time,” Gregg Mast, executive director of CEEM, said in a press release. “With the right policy levers in place, businesses can fully leverage the clean energy transition and ensure that jobs continue to grow and that the economic benefits are extended to everyone who lives here.”

Minnesota has access to some of the best wind resources in the U.S., making it the cheapest form of energy to build. At $36/MWh ($25/MWh including subsidies), wind’s levelized cost of electricity is lower than combined-cycle natural gas ($39/MWh). Gas and renewables increasingly have displaced coal, whose share of electric generation dropped from 38% in 2018 to 25% in 2020.

But challenges remain on the political front, as the divided state legislature is hampering Gov. Tim Walz’s (DFL) bid to codify his goal of 100% zero-carbon emission by 2040. The Minnesota House is controlled by the Democratic-Farmer-Labor party; the Senate, by Republicans. Clean energy bills have either stalled in committees or have not received bipartisan support. (See Bipartisan Agreement on Minn. Climate Bills Unlikely.)

To date, eight states and the District of Columbia have enacted 100% clean energy mandates, according to BloombergNEF.

While “we’re already more than halfway there, there are a set of roadblocks that are political,” said Aditya Ranade, deputy commissioner of the Minnesota Department of Commerce’s Division of Energy Resources.

Ranade was cautious about pointing fingers, making sure to credit Republican state Sen. David Senjem, who chairs the Energy and Utilities Finance and Policy Committee and has been a strong proponent of clean energy options. But Ranade added that skeptics believe current clean energy options may be “more expensive and less reliable” than fossil fuels.

Business officials need to help spread the facts and successes of Minnesota’s move toward clean energy, said Ken Smith, CEO of Ever-Green Energy, a St. Paul-based company that specializes in the development and operation of renewable energy systems.

“We are transitioning an energy system,” Smith said. “It takes a lot of educating and connecting the dots. Increasingly, we have to help people connect the dots.”

Becky Wacker, area general manager for Trane Commercial HVAC North America, agreed that “the political challenges are there.” She added that the pandemic has created other challenges as companies consider bringing employees back on site. Wacker said “outdoor airflow options” to provide better ventilation could slow energy conservation efforts.

Still, business leaders are encouraged by the progress of companies and communities.

Brad Heitland, a business development executive with the Minneapolis-based M.A. Mortenson Company’s solar and renewables division, praised the private sector for making commitments to use and develop clean energy. Minnesota-based Cargill, 3M Company, Ecolab, Target and General Mills have signed agreements to power their operations with either wind or solar energy from projects representing more than 1.3 GW of capacity.

Heitland also cited the growing number of electric vehicles in the state. From 2016 to 2020, annual registrations of battery electric vehicles increased 535% to 3,800 units. Annual plug-in hybrid electric vehicle registrations rose 150% to 2,000 units.

Ranade said a major clean-energy challenge is the need for energy storage of more than 10 hours.

A 2020 cost-benefit analysis of adding energy storage to the grid, conducted by Energy and Environmental Economics (E3) for the Department of Commerce concluded that “solar plus storage is cost-effective today and stand-alone storage could become cost-effective in 2025,” he said.

Ranade said there is also a need for more flexible loads, including appliances that can reduce use during peak periods.

Equity issues also remain critical in energy distribution and development, Ranade said. His department, along with others in the Walz administration, are in frequent dialogue with communities of color, he said. “We’re in a listening mode, and we want to make sure we’re capturing the energy needs of all communities.”

Smith and Wacker agreed, saying their companies are reexamining policies that may inadvertently show biases toward persons of color. Smith said diversifying a company’s leadership is critical as well.

While the yearlong pandemic has created many tough challenges, Heitland said Mortenson has found “easier access” in college recruiting through virtual tools. And he is encouraged by the response.

“Young people are wanting to move into clean energy,” Heitland said.

Wacker agreed, saying although there has been “a loss of talent in facilities management” since the pandemic, more professionals and companies are placing additional emphasis on energy conservation and creating clean energy systems.

“It’s getting sexy again,” Wacker said.

Highlights

Here are some additional highlights from BloombergNEF’s 11-page factsheet:

• • • Minnesota’s energy productivity (the ratio of GDP to electricity demand) increased 24% over 10 years, with power consumption dropping 9% while state GDP rose 13%.
    • 82% of new power-generating capacity built in the state in the last decade came from renewable energy, adding 3.6 GW.
    • Since 2011, power sector greenhouse gas emissions are down 40%, with a 17% reduction in 2020.
    • The American Council for an Energy-Efficient Economy ranked the state 9th nationwide in energy efficiency in 2020 with a score of 32 out of 50, well above the average of 20. The state’s utilities have met or exceeded the state’s annual 1.5% energy savings goal each year since 2011. Walz has proposed expanding the state’ EE goals in the proposed Energy Conservation & Optimization Act.