Solar power facilities coming to southeast New Mexico. States, feds push renewable energy
A leading utility provider in southeast New Mexico moved forward in developing solar power facilities in the area as a means of modernizing the region’s power grid.
Xcel Energy said it planned to invest about $770 million in its New Mexico and Texas service area, modernizing two natural gas facilities in the Hobbs area, along with building two solar facilities in that area and a third near Earth, Texas about 50 miles east of Clovis.
The company submitted its final plans to the New Mexico Public Regulation Commission, according to a July 26 news release.
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The solar facilities in New Mexico will augment Xcel’s Cunningham Station, adding a combined capacity of 268 megawatts (MW), while the other in Earth, Texas will produce 150 MW.
Xcel estimated the two facilities will produce enough power for about 140,000 average Xcel customers, and pending approval from the PRC could go into service by 2026 and 2027.
Meanwhile, Xcel said it planned to upgrade two natural gas facilities at its Cunningham-Maddox Generating Complex near Hobbs, extending the lifetime of the facilities to 2027 and 2028.
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A battery system was also planned to be installed at the site to store surplus power.
Jennifer Grassham, president of the Economic Development Corporation of Lea County said providing access to reliable to locals was essential, along with jobs and economic development brought on by the construction and continued operations of the facilities.
“Having abundant, reliable and affordable power is critical to the long-term economic success of Lea County, a county which contributes significantly to the state’s overall economy,” Grassham said.
“We are fortunate to have existing Xcel Energy employees, infrastructure and grid interconnections in our backyard, making Lea County an attractive location for additional power generation today and in the future.”
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The company estimated the facilities will return $116 million in tax revenue to the host communities and save customers between $900 million and $2 billion in fuel saving over the next 35 years.
“Our power plants are operated and maintained by highly trained and dedicated employees and hosted by supportive communities that have come to depend on the economic activity these power plants generate,” said Adrian Rodriguez, president of Xcel’s New Mexico and Texas operations.
Xcel will also receive $500 million in federal solar tax credits via the facilities and said that would pass savings on to its customers, while it estimated the expansion of the Earth, Texas site will save users $440 million.
“By reinvesting in these power plants, we are providing new opportunities for our valued workers who have served this region with reliable power for decades while realizing significant savings for our customers by repurposing existing grid connections and generating electricity from free and abundant sunshine,” Rodriguez said.
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New Mexico, feds pushing renewable energy
Xcel’s announcement came amid a state-wide and national push to increase renewable energy development, intending to reduce pollution from traditional, fossil fuel-based sources like natural gas and coal.
New Mexico’s State Land Office reported 12 active leases of State Trust land for solar power development, with a total capacity of 274 megawatts.
That includes three facilities in southeast New Mexico: the Hayhurst facility owned by Chevron USA on 328 acres in Eddy County with a capacity of 25.8 MW, along with two sites in Lea County for a total of 20 MW owned by Longroad Energy.
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Most recently, the State Land Office on June 14 awarded a lease to Revolve Afton Solar to build a solar array in Dona Ana County to generate 125 MW.
Land Commissioner Stephanie Garcia Richard said the Office increase revenue from renewables in New Mexico by 1,400 percent between 2019 and 2022, while leases for wind solar were up 208 percent.
“It’s my job to earn as much money as possible for New Mexico’s school kids, and expanding the renewable energy footprint on state lands is a great way to provide a new, steady and sustainable source of revenue from a rapidly growing industry,” Garcia Richard said in a statement.
On July 26, the Department of Energy announced it was awarding $33 million to 14 clean energy research projects nationwide, including the University of New Mexico.
That project will see UNM researchers study the “impacts of changing headwater stream networks on surface water quality, habitats and ecosystem responses,” read a DOE announcement.
“America’s next big energy breakthrough can come from anywhere in the nation, and that’s why Federal R&D investments should reach and benefit all parts of the country,” said U.S. Secretary of Energy Jennifer Granholm, in a statement.
“The funding we’re announcing today will spur innovation and create energy jobs around the nation.”
Adrian Hedden can be reached at 575-628-5516, achedden@currentargus.com or @AdrianHedden on Twitter.
This article originally appeared on Carlsbad Current-Argus: Xcel Energy bringing more solar power to southeast New Mexico
