HERMANTOWN, MN:  Today federal and state officials and energy leaders gathered at Minnesota Power’s Arrowhead Substation in Hermantown, MN, to celebrate partnerships and progress on a major electric grid upgrade that 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, to bring together multiple partners for the first time to recognize key milestones for Minnesota Power’s high-voltage, direct-current (HVDC) transmission system terminal expansion capability project, including:  

• $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, which is managed by the Minnesota Commerce Department  
• Approval by the Minnesota Public Utilities Commission on Aug. 2, 2024, for the project   

U.S. DOE Under Secretary Crane said, "Communities across Minnesota deserve to have a power grid that provides clear, reliable, and affordable power. Thanks to the Biden-Harris Administration's Investing in America agenda, 47 energy projects have been selected in Minnesota to receive a potential $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. 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.”   

“Modernizing our electric grid is a win for the environment and for Minnesotans who will benefit from more affordable, reliable clean electricity,” said Senator Smith. “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.”

“Minnesota is leveraging local, state, and federal partnerships to strengthen our electric grid and invest in a clean energy economy,” said Governor Tim Walz. “This investment will make our electric grid more reliable, delivering safe and affordable clean energy to Minnesota homes and businesses across the state and helping us achieve our clean energy goals.”  

Commerce Deputy Commissioner Wyckoff said, “This project illustrates the power of partnerships that are moving Minnesota on the path to a clean energy future.  With the support of both federal and state clean energy funds, we can expand the electric grid, bring on more renewable and clean energy resources, and grow our state’s clean energy economy.”   

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. Achieving that goal will take all of us working together, and this project is an outstanding example of that.” 

Other energy leaders at today’s celebration included state Sen. Grant Hauschild (DFL-Hermantown), Minnesota Public Utilities Commission Chair Katie Sieben and Josh Skelton, Minnesota Power chief operating officer, and others.    

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 (AC) lines. 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 featuring state-of-the-art technology. These upgrades will significantly expand capacity, from 900 megawatts up to 1,500 MW, and improve reliability.  

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.     

Additional Resources 

Project summary Minnesota Power HVDC Modernization - provided by the Department of Commerce’s Energy Environmental Review & Analysis unit

State Competitiveness Fund – $190 million in state funding managed by the Minnesota Department of Commerce for the purpose of increasing the success of Minnesota businesses and communities seeking federal clean energy and climate-related funds 

Connect with the Minnesota Department of Commerce  

Get updates and news from the Minnesota Department of Commerce by following Commerce at mn.gov/commerce or @MNCommerce on social media.

Contact

Mo Schriner, Communications Director
Minnesota Department of Commerce
651-363-1227
mo.schriner@state.mn.us