New Mexico approves 310MW battery storage plan to enhance utility capacity and save customers $13 million.

New Mexico’s state regulator, the NMPRC, has approved a plan to add 310MW of battery storage to the state utility by summer 2026 following a period where the utility twice exceeded its record peak electricity demand. The application includes a 20-year ESA with Clenera, covering 100MW/400MWh of energy storage output and capacity from the developer’s Quail Ranch Solar and Storage facility in Rio Rancho, Bernalillo County, New Mexico. The second ESA covers 49.5MW/198MWh from the Route 66 Energy Storage Project in Cibola County. The three volumetric ESAs would save customers US$13 million on a net present value (NPV) basis compared to three fixed term ESAs if the impact of imputed debt was also included. PNM also received approval to construct a 60MW/240MWh standalone BESS called the Sandia Storage Project. The projects were selected following the utility’s 20-28 Generation Resources RFP in 2022.