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New Mexico reached a 50% renewable electricity portfolio in 2024, six years before the Energy Transition Act’s 2030 deadline. Its largest utility, PNM, says 80% of its electricity was carbon-free last year and is seeking regulatory approval for a large package of wind, solar and battery projects that includes a 40-megawatt gas plant. The gas proposal, future demand and PNM’s pending ownership change remain points of debate.
New Mexico reached 50% renewable electricity in 2024, six years before the 2030 target set by its 2019 Energy Transition Act, according to a report by Canary Media. The state’s largest utility, Public Service Company of New Mexico (PNM), also reported that 80% of its electricity was carbon-free last year, as it seeks approval for new wind, solar and battery resources to meet rising demand.
The Energy Transition Act requires investor-owned utilities to reach 50% renewable portfolios by 2030, 80% by 2040 and 100% carbon-free electricity by 2045, a target that reflects the broader clean energy transition. New Mexico reached the first benchmark in 2024 and has continued adding renewable generation, the Canary Media report said. The state-level milestone and PNM’s reported carbon-free share are different measures: the law sets renewable portfolio targets, while PNM’s 80% figure includes carbon-free electricity and refers to the utility’s output last year.
PNM has asked regulators to approve a proposed portfolio totaling nearly 1.7 gigawatts: 800 megawatts of wind, 240 megawatts of solar and 610 megawatts of battery storage, alongside broader efforts to expand power lines and clean energy. The battery capacity would be split between systems with four-hour and eight-hour durations. The package also includes La Luz II, a 40-megawatt gas peaker plant, which the utility says is needed to maintain reliable service when wind and solar production is low.
The proposal could help PNM leave its 200-megawatt share of the Four Corners coal plant by July 2031, as communities consider ways to fund clean energy. PNM’s record peak demand is 2.3 gigawatts, while its installed nameplate capacity is 5 gigawatts, according to the report. The state is also preparing for a forecast 40% increase in electricity consumption by 2032; the report does not specify the forecast’s comparison year.
Demand Tests the Clean Power Pace
Reaching the renewable benchmark early shows that New Mexico has added wind and solar faster than the state’s statutory timetable required. It also places attention on the next challenge: supplying electricity reliably as demand grows, not just adding clean generation when weather conditions are favorable.
The proposed mix illustrates the trade-offs before regulators. Batteries can store electricity for later use, but PNM argues the package also needs a small gas plant to cover periods when renewable output falls. Environmental groups oppose adding fossil-fueled generation before the 2045 deadline, according to Canary Media. The commission’s decision will help determine how the utility balances reliability, emissions commitments and the cost of new infrastructure.
The outcome matters beyond PNM’s customers because the utility’s resource choices affect progress toward New Mexico’s clean-power requirements and the timing of its coal exit. The pending acquisition of PNM’s parent company by Blackstone is another source of concern for customers who want to know whether ownership will affect the utility’s clean-energy plans.
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How New Mexico Set Its Targets
The 2019 Energy Transition Act established a phased schedule for investor-owned utilities: 50% renewable electricity by 2030, 80% by 2040 and 100% carbon-free electricity by 2045. The first target has now been met ahead of schedule, but the later deadlines remain in place. Meeting an early milestone does not establish that the state has already reached its final clean-energy goal.
New Mexico’s wind, solar and open land have supported early additions of renewable power, the report said. As renewable generation grows, though, utilities must also plan for hours when weather reduces output. PNM’s planning team models supply and demand across the day and over future years, including periods of low wind and solar production, according to senior vice president Laurie Williams.
The utility has some nuclear power from Arizona, which provides carbon-free electricity around the clock. But the report says other potential firm, clean resources—including long-duration storage, advanced geothermal and green hydrogen—are not currently economical or commercially available for PNM’s procurement. That limitation is part of the utility’s case for including gas in the proposed portfolio.
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Gas Plant and Ownership Questions
The state’s early renewable milestone is reported, but PNM’s proposed portfolio has not yet been described as approved. The key dispute is whether La Luz II is needed for reliability or conflicts with the state’s commitment to phase out fossil fuels. Environmental groups have objected to building another gas plant, and regulators must weigh that opposition against the utility’s reliability analysis.
The final decision, conditions and schedule for the proposed projects remain unclear. The report also describes customer concern about Blackstone’s pending takeover of PNM’s parent company, but does not establish how the ownership change would affect investment decisions or clean-energy targets. The effects of the forecast demand increase, including the year used as its comparison baseline, are not specified in the source material.
New Mexico’s experience also leaves open how workers in fossil-fuel industries will be supported as power generation changes. Canary Media reported that bringing fossil-fuel workers along has proved harder than building clean-energy resources, but provided no specific workforce figures or program outcomes.
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Regulators Weigh PNM’s Proposal
The New Mexico Public Regulation Commission is reviewing PNM’s proposed resource package. Canary Media reported that hearings were held in October, with additional hearings scheduled for January to examine the gas plant specifically. The source does not identify the year for those hearing dates or give a final decision date.
Regulators will decide whether to approve the proposed wind, solar, battery and gas resources, and under what conditions. That ruling will shape PNM’s path toward its planned July 2031 exit from its Four Corners coal share. Customers and state observers will also be watching for developments in Blackstone’s pending takeover and for further detail on how New Mexico plans to meet rising electricity demand while advancing toward its 2040 and 2045 targets.
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Key Questions
What clean-energy target did New Mexico reach early?
New Mexico reached a 50% renewable electricity portfolio in 2024, ahead of the Energy Transition Act’s 2030 target for investor-owned utilities. The law also sets later targets of 80% renewable electricity by 2040 and 100% carbon-free electricity by 2045.
Does PNM’s 80% carbon-free figure mean it is 80% renewable?
No. The Canary Media report says PNM produced 80% carbon-free electricity last year. Carbon-free power can include sources such as nuclear, while renewable portfolio targets refer to renewable electricity. The figures describe different measures.
What is PNM asking regulators to approve?
PNM has proposed nearly 1.7 gigawatts of resources: 800 megawatts of wind, 240 megawatts of solar, 610 megawatts of battery storage and a 40-megawatt gas peaker plant.
Why is the gas plant controversial?
PNM says La Luz II is needed to support reliability when wind and solar output is low. Some environmental groups argue that building another fossil-fueled plant conflicts with the state’s commitment to phase out fossil fuels. Regulators have to consider both positions.
What happens next?
The New Mexico Public Regulation Commission is reviewing PNM’s proposal. The source report says hearings were held in October and more were scheduled for January to focus on the gas plant; it does not provide the year or a final decision date.
Source: rss
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