A Midwestern utility community is ditching a gas-fired power plant and adding renewable energy sources

Minnesota’s largest utility has agreed to abandon plans for a new natural gas power plant planned in North Dakota and add thousands of megawatts of new renewable energy and battery storage as part of a settlement with environmental groups, labor and other parties.

The Xcel Energy settlement seeks to resolve two cases before the Minnesota Public Utilities Commission regarding the utility’s long-term plans to meet energy demand and meet state climate regulations requiring 100% carbon-free electricity generation by 2040 .

Under the plan, Xcel will continue to add a new gas-fired power plant in Lyon County, Minnesota, and extend two agreements to purchase gas-fired power from third-party-owned power plants. However, the settlement calls for the utility to add more wind, solar and battery power than initially proposed.

The plan “invests in innovations that maximize customer value, create jobs and support the communities we serve,” Ryan Long, president of Xcel Energy’s operations in Minnesota and the Dakotas, said in a statement.