How wind and solar saved Minnesotans over $1M and counting

Boasting a 2.3-megawatt wind turbine and a 500-kilowatt solar array, the Wind Solar Hybrid Project is effectively providing locally generated renewable energy to LREC members. 

Dylan Aafedt, Lake Region’s Vice President of Business Solutions, says the members are at the center of their work. “Our goal is always to be innovative, and to be forward leading cooperative.”

When the project launched six years ago, LREC estimated approximately $200,000 per year in wholesale energy costs. Today, that vision is a reality. Aafedt says the Wind Solar Hybrid Project has exceeded their projected savings estimates!

In addition to meeting LREC’s goals, the Wind Solar Hybrid Project is winning approval from the community, members particularly appreciate the local energy generation and the savings. Projects like these are especially important for rural Minnesota, where energy affordability, reliability, and resilience are key concerns for communities. Many rural areas face higher energy costs and are more vulnerable to power disruptions due to their distance from major grid infrastructure. By leveraging locally generated renewable energy and smart load management, this project helps reduce peak demand costs.

Always looking for innovations, Lake Region has continued to create opportunities. Building off the Wind Solar Hybrid Project, LREC has been conducting a pilot project to test the potential for large capacity water heaters to act as thermal storage batteries!

Here’s how it works: each night between 10 p.m. and 6 a.m. a participant's water heater heats up the equivalent of at least 150 gallons of water. At 6 a.m. the heating elements in the participants' water heater shut off, until turning back on at 10 a.m. The large amount of water that was just heated up is typically plenty for morning showers, laundry, or other needs. A similar rotation happens in the evening where the participants' heating elements shut off at 6pm and turn back on at 10pm. 

Turning off the heating elements in the participants' water heaters during these time frames frees up energy during peak use times, reducing the demand on the grid. The community storage pilot allows LREC to turn those water heaters back on if the Wind Solar Hybrid project is generating more power than is being used. Heating water on this schedule allows LREC to manage some of the load during peak morning and evening hours and participants get access to a special rate that lowers the cost of their power, and pairing it with the renewable project takes it a step beyond traditional load control programs. 

The Community Storage Pilot Project has been a successful addition to LREC’s existing load management programs, of which 45% of their members (so far) have chosen to participate in. According to Aafedt, most of the members who participate in the pilot don’t notice a difference with their hot water.

This pilot project not only benefits the grid but also showcases how everyday appliances, like water heaters, can play a role in a more sustainable energy future. This thermal storage pilot proved that the concept works well, but Aafedt notes that the cooperative would need many more water heaters to absorb all the excess energy generated by the hybrid project, especially during the shoulder months when heating and cooling loads are low. 

LREC’s innovative approach to energy management demonstrates the power of member-focused solutions. By integrating the hybrid project with thermal storage, LREC is reducing strain on the grid and making better use of renewable energy, while helping members save on energy costs. As electrification accelerates—with more homes adopting heat pumps, EVs, and other electric technologies—smart load management strategies like this will be increasingly important.

Today Lake Region continues to explore new ways to optimize energy use, reinforcing the cooperative’s commitment to providing affordable, reliable, and forward-thinking solutions for its members. 
As the energy landscape evolves, projects like Lake Region’s Wind Hybrid Solar project and Thermal Storage Pilot provide a blueprint for how rural communities can leverage technology and collaboration to build a more resilient and cost-effective energy future.

Useful links:

• Combining wind, solar, and thermal storage for beneficial electrification
• Distributed Wind Case Study: Lake Region Electric Cooperative