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PNM, a utility provider in New Mexico, has proposed a plan to address the increasing demand for electricity in the state by adding more power sources. The company plans to add 800 megawatts of wind generation, 240 megawatts of solar generation, and 610 megawatts of battery storage, along with a 40-megawatt natural gas facility that would be used as needed through 2045. If approved, the plan would allow PNM to eliminate coal as a generation source for its customers by 2031.
PNM Explores New Power Sources To Meet Growing Electricity Demand In New Mexico
Public Service Company of New Mexico (PNM) has laid out a proposal to add new power sources in reaction to the increasing demand for electricity in New Mexico. The company is keen on introducing new wind, solar, and battery storage projects, as it steadily phases out coal-fired power for its customers by 2030.
PNM revealed that the growth in electricity demand necessitated a new plan, especially as the company seeks to meet the standards of the Energy Transition Act. Notably, the company has submitted an application to the New Mexico Public Regulation Commission, detailing its plans to introduce 800 megawatts of wind generation, 240 megawatts of solar generation, and 610 megawatts of battery storage.
Alongside these, PNM has proposed a 40-megawatt natural gas facility that would operate as needed through 2045. The company has emphasized that these resources are instrumental in managing the expected increase in electricity demand across New Mexico and replace power presently generated by the Four Corners Power Plant.
If the proposal is approved, it would enable PNM to eliminate coal as a source of generation for its customers by 2031. The company has projected an increase in electricity demand by about 40% by 2032. This projection is driven by load growth and various economic development projects across the state.
PNM has noted that new large energy users who will be joining the system would cover the costs linked with the additional demand they put on the grid. The existing customers would not have to bear these costs.
Additionally, the company has plans to seek approval for a new transmission line to deliver additional wind energy to its customers. PNM stated that the federal tax credits presently available through the Inflation Reduction Act could help lower costs if the projects commence before the incentives expire.
The projects are not just targeted at providing electricity; they are also expected to generate property tax revenue for local communities and create construction jobs, according to the utility. The proposed resources would be developed by third-party companies and form part of PNM’s long-term infrastructure investment plans.
The application is currently under review by the New Mexico Public Regulation Commission.
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