D. E. Shaw Renewable Investments (DESRI), the renewable power arm of US investor D. E. Shaw, has started construction on a 130MW solar, 260MWh battery storage facility in the US state of New Mexico.
The company is building the Carne Solar and Storage project in Luna County, and expects to commission the project next year. DESRI has signed a 20-year power purchase agreement (PPA) with local utility El Paso Electric (EPE) to sell power generated at the project, and the Carne project’s battery energy storage system (BESS) will be the largest in EPE’s portfolio.
“DESRI is pleased to continue our investment in the energy transition in New Mexico with our fourth utility-scale renewable energy facility in the state, and to build on our long-standing relationship with EPE,” said Hy Martin, chief development officer of DESRI.
“In addition, the project will support the local community with economic development opportunities for years to come.”
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The New Mexico Public Regulatory Commission (NMPRC) approved the project’s offtake contracts last year, clearing the path for DESRI to begin construction. US engineering company SOLV Energy will provide engineering, procurement and construction (EPC) services at the project, and oversee operations and maintenance work once the project begins commercial operation, and US investors Galehead Development and Lacuna Sustainable Investments were involved in the initial development of the Carne project.
The project is DESRI’s latest in the state, following its 200MW San Juan solar-plus-storage project, for which it completed financing last June, and the 28MW Alta Luna solar project, which started commercial operations in 2017.
The deal is also the latest move towards EPE’s expansion of its clean energy portfolio. EPE aims to add 280MW of new solar and storage capacity next year, alongside a further 50MW of capacity in a ‘business community solar’ programme. The utility plans for carbon-free energy to account for 80% of its total energy mix by next year, and to be fully decarbonised by 2045.
These targets are in line with New Mexico’s Renewable Portfolio Standards (RPS), which obligates investor-owned utilities to meet 80% of their electricity demand with renewable energy by 2040, and be fully decarbonised five years after that.
“The Carne facility is dedicated 100% to serving our New Mexico customers and will be a critical resource in enabling EPE to meet the needs of customer demand and requirements of New Mexico’s RPS goals,” said James Schichtl, vice president of regulatory operations and resource strategy at EPE.
“The battery storage component of the new facility will be the largest serving EPE customers and provide much needed capacity and reliability for our New Mexico customers.”
