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PNM seeking RFPs for 700 MW in generation to meet New Mexico capacity needs.

PNM seeking RFPs for 700 MW in generation to meet New Mexico capacity needs.
(San Juan generating station in New Mexico)

New Mexico electricity utility Public Service Co. of New Mexico (PNM) is now seeking about 700 MW in new generation resources to improve reliability in the wake of recent energy crisis around the region.

PNM’s 2022 Generation Resource RFP seeks near-term capacity needs, including up to 200 MW of “firm, long-term or short-term capacity.” The company informed New Mexico regulators a notice of default for a planned 100 MW solar and 30-MW battery storage system project.

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“That plant’s default, alongside energy market conditions impacted by the California energy crisis in 2020 and illustrated by Texas’ tragic winter storms, have created these potential resource inadequacies,” the PNM release reads.

The planned solar and storage project was announced  to replace some generation lost with the coal-fired San Juan Generating Station to be retired next year. PNM will lose some 900 MW of generation capacity with San Juan’s closure, according to reports.

In addition, PNM this week announced an RFP related to economic recovery to serve expected long-term load growth. The utility is targeting up to 500 MW of capacity with this RFP.

In October 2020, Spain’s Iberdrola announced it was acquiring PNM for about $8.3 billion. The utility deal is through Iberdrola’s Avangrid utility subsidiary.