New Mexico wind power line has $20.5B in benefits, study says, despite wildlife concerns

A wind farm and transmission line connecting turbines in southern New Mexico with energy markets in Arizona and potentially California was estimated to generate up to $20.5 billion in total economic impacts when completed.

The SunZia Transmission Line, being built and operated by Pattern Energy, would begin at the SunZia Wind Project in Lincoln, Torrance and San Miguel counties and deliver power generated to a substation point in Pinal County in southern Arizona where it could then go further west.

It was intended to export about 3,500 megawatts of New Mexico wind power from the growing sector about 550 miles to markets outside of the state, in urban areas where demand is high.

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But the project was also expected to benefit New Mexico and local communities where it is installed, providing $16.2 billion in direct economic impacts which includes capital spending and payments to private landowners, according to a study published by Energy, Economic and Environment Consultants, an economic research firm.

SunZia would also bring about $1.9 billion in indirect economic benefits, including the purchase of goods and services by those involved like workers, along with lodging and supplies, the study read.

There would also be $1.1 billion in induced benefits, meaning benefits for public entities like police, fire and schools, read the study, along with $1.3 billion in payments directly public entities.

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The project itself marked an $8 billion capital investment, Pattern reported, contending those costs would not be passed on to ratepayers.

Pattern Energy Chief Executive Officer Hunter Armistead said the project would also create more than 2,000 new jobs and provide renewable energy to 3 million customers.

He said the project was developed through collaboration with local stakeholders and environmental and conservation groups.

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“SunZia demonstrates that working toward a sustainable future can also create meaningful economic value and a lasting positive impact on local communities,” Armistead staid.

“We’re proud that SunZia is the result of many years of collaboration with communities, local residents, landowners, environmental groups, wildlife organizations, and federal agencies.”

The project was underway with a more-than-decade-long federal permitting process that saw the route of the transmission line adjusted to avoid certain areas along the route like White Sands Missile Range in south-central New Mexico.

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But some conservationists still opposed the development as one that could risk sensitive wildlife corridors in the deserts of southwest New Mexico and eastern Arizona.

Peter Else, chairman of the Arizona conservation group the Lower San Pedro Watershed Alliance argued the San Pedro Valley was ecologically sensitive and would be damaged by the project in a January appeal of an approval from the Arizona Corporation Commission of the line’s latest route.

In the appeal in Arizona Supreme Court, Else said the Commission’s decision should be vacated as it failed to consider the environmental harm the transmission line could have.

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“Now, in 2022, the ACC has approved ripping up the San Pedro Valley so that SunZia can transmit New Mexico wind power to California on a dedicated, direct current line that no other utility or generator will be able to use,” read the appeal.

“This Court needs to vacate the ACC decision, clarify the law, and remind the ACC of the factors that it must consider when approving a transmission line. Had it considered those factors, these lines would never have been approved.”

To New Mexico leaders, the project presented an economic benefit and boon to the state’s growing renewable energy sectors.

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The state is heavily reliant on fossil fuels for its energy and economic stability, but renewables were pushed by Gov. Michelle Lujan Grisham and other political leaders in recent years to diversity New Mexico’s economy and mitigate the impacts of pollution.

“New Mexico is proud to be the home of the largest clean energy infrastructure project in U.S. history, and we are eager to realize the economic and environmental benefits this project will provide,” Lujan Grisham said.

"Clean energy is the key to meeting our climate goals and building a lower carbon future, and a project like this one that also generates billions in economic impact makes this a clear win for New Mexico."

U.S. Sen. Martin Heinrich, also a supporter of the project, said the recent study showed SunZia would bring with it “positive impacts” both on meeting U.S. energy needs and desires to reduce climate change.

"This report underscores the transformative power of large-scale clean energy projects like SunZia and New Mexico’s role in helping meet our nation’s goals and energy demands,” Heinrich said.

Adrian Hedden can be reached at 575-628-5516, achedden@currentargus.com or @AdrianHedden on Twitter.

This article originally appeared on Carlsbad Current-Argus: New Mexico wind power line has $20.5B in benefits, study says