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Approval for $101.7m utility solar program in New Mexico

PNM Resources will be using utility-scale solar technology from First Solar

New Mexico regulators have approved a plan by utility PNM Resources to develop 22 megawatts of solar power plants.

The utility-scale projects will be built using First Solar technology at various sites across the state, to be completed by the third quarter of 2011.

The New Mexico Public Regulation Commission capped the cost of the program at $101.7 million, which could be recovered via customer electricity bills, but not for at least a year.

This is because PNM’s proposed electricity rates for the following 12 months are already under consideration.

The regulators refused to allow a later phase of the PNM-owned utility solar program, which would have taken new capacity up to 45MW, citing cost concerns.

They also rejected other parts of the utility’s original 80MW renewable energy plan for concerns including costs.

Rejected programs included a $102 million proposal to replace PNM’s existing small PV and large PV net metering program with a new 24MW initiative, and establish a $58 million 10MW customer-sited solar program for government and non-profit organizations.

Target

Albuquerque-based PNM supplies electricity to more than 875,000 homes and businesses in New Mexico and Texas, and under New Mexico law must provide 10% of its energy supplies from renewable resources by 2011.

“We are pleased that the Commission recognized the significance of adding renewable energy to our existing generation resources,” said Pat Vincent-Collawn, PNM Resources president and CEO.

“Our industry, along with regulators, needs to continue to look for ways to add renewable power while balancing the cost impact to consumers. This is the first step toward achieving that goal and meeting the state’s requirement to diversify our energy resources.”

Storage pilot

Along with the smaller solar utility-scale plan, the New Mexico regulators have given consent to a demonstration project that will use solar generating facilities in tandem with energy storage systems to try out the technology.

The $6 million project, which will cost around $38,000 a year to run, will provide around 500 kilowatts of generating capacity.

Part-funded by a US Department of Energy grant, the demonstration facility would show how energy storage systems can boost the supply of energy from solar plants during interruptions in sunlight, or during evening hours.