TL;DR
New Mexico reached the 50% renewable electricity target in its 2019 Energy Transition Act in 2024, six years before the 2030 deadline. Public Service Company of New Mexico says 80% of its electricity was carbon-free last year and is seeking approval for a new portfolio of wind, solar, batteries and a small gas peaker plant. Regulators still have to weigh the proposal, including objections to adding gas capacity.
New Mexico reached its 50% renewable electricity benchmark in 2024, six years before the deadline set by the state’s 2019 Energy Transition Act, according to a report by Canary Media. The milestone places the state ahead of its statutory schedule as its largest utility, Public Service Company of New Mexico (PNM), seeks approval for more wind, solar and battery capacity to serve growing demand.
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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. New Mexico reached the first benchmark in 2024 and continued adding renewable resources, Canary Media reported. The law’s targets apply to investor-owned utilities; the 2024 statewide milestone should not be read as proof that every source of electricity in the state is renewable.
PNM reported that 80% of its electricity was carbon-free last year. That figure includes power sources that do not emit carbon, which is a broader category than renewable energy. PNM’s record peak demand is 2.3 gigawatts, while it has 5 gigawatts of nameplate capacity installed, according to the report. Nameplate capacity describes maximum rated output, not the amount of electricity generated at every moment.
In May, PNM 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. The package also includes a proposed 40-megawatt gas peaker plant, La Luz II. PNM says the components work together to meet reliability and resource-adequacy requirements. The proposal could support the utility’s planned exit from its 200-megawatt share of the Four Corners coal plant in July 2031, but that outcome depends on approvals and the projects proceeding.
Meeting Demand While Cutting Emissions
The early milestone matters because New Mexico is not only replacing existing electricity sources; it is preparing for more electricity use. The report cites an expectation that consumption will grow 40% by 2032. That forecast makes new generation and storage relevant to whether the state can maintain reliable service while moving toward its 2045 carbon-free target.
Wind and solar have helped the state meet its early benchmark, but output varies with weather and time of day. Batteries can store electricity for later use, though their duration is limited. PNM’s proposal reflects the utility’s view that a mix of resources is needed to serve demand during periods of low wind and solar production. The specific balance remains contested, especially over whether a new gas plant fits the state’s long-term legal commitment.
The transition also has economic and workforce consequences. Rep. Nathan Small, the law’s sponsor, said the targets were intended to create economic opportunities and protect the environment. The report also notes that supporting workers affected by the shift away from fossil fuels has proved difficult, even as clean-energy construction advances.
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From 2019 Law to 2024 Milestone
The 2019 Energy Transition Act established a staged timetable for investor-owned utilities: 50% renewable by 2030, 80% by 2040 and 100% carbon-free by 2045. The 2024 result puts New Mexico ahead of the first date, but it does not mean the later targets have already been met. Each stage requires continued investment and regulatory decisions.
New Mexico has broad, open areas and strong wind and solar resources, conditions that have supported early renewable additions. As deployment grows, however, the challenge shifts from adding low-cost renewable electricity to ensuring power is available when production falls. PNM also receives a small amount of nuclear power from Arizona, while longer-duration storage and other emerging firm, low-carbon technologies are not currently economical or commercially available at the scale needed, according to company officials cited by Canary Media.
Dan West of the climate nonprofit Clean Air Task Force said the state had paired ambitious targets with institutions, infrastructure and an investment environment intended to deliver them. That is his assessment of the state’s progress; the pending utility proposal and workforce issues show that reaching the statutory goals still involves policy and implementation choices.
“The whole thing is interdependent, and I can only meet the reliability and resource adequacy metrics with the whole package.”
— Laurie Williams, PNM senior vice president for integrated planning and transmission development
Gas Plant and Utility Ownership Questions
Regulators have not yet resolved whether PNM can build La Luz II. Environmental groups oppose adding another fossil-fueled plant, arguing that it conflicts with the commitment to phase out fossil fuels. The dispute is before the regulatory commission, which held hearings in October and had further hearings scheduled for January, according to the report. The source material does not state the commission’s eventual decision.
It is also unclear whether every element of PNM’s proposed portfolio will be approved, built on schedule or delivered at the proposed capacity. The report says customers have concerns about the pending takeover of PNM by Blackstone and the effect it could have on the utility’s clean-energy direction; it does not establish what that effect will be. The state’s reported 40% demand-growth expectation is a forecast, not a confirmed future outcome.
The 2024 renewable share and PNM’s 80% carbon-free figure describe different measures and different scopes. The available material does not provide a full statewide breakdown by generation source, nor enough detail to determine how the proposed projects would change electricity prices or household bills.
Regulators Weigh PNM’s Proposed Mix
The immediate milestone is the regulatory commission’s review of PNM’s proposed generation and storage portfolio, with particular scrutiny of La Luz II. Hearings on the gas plant were scheduled for January after earlier hearings in October, according to Canary Media. The commission’s decision will clarify whether PNM can proceed with the package as proposed or must revise it.
After a decision, the next questions will be whether the approved wind, solar and battery projects are built on time, how they perform as demand changes, and whether PNM can leave its Four Corners coal stake on the planned July 2031 timetable. Further progress toward the 2040 and 2045 targets will depend on those project outcomes, future power needs and the availability of reliable low-carbon resources.
Key Questions
What clean-energy goal has New Mexico already reached?
New Mexico reached the Energy Transition Act’s 50% renewable portfolio benchmark in 2024, ahead of its 2030 deadline. The figure concerns the state’s progress toward the law’s renewable target and does not mean all electricity is renewable.
Is PNM’s electricity entirely clean?
No. PNM reported that 80% of its electricity was carbon-free last year. Carbon-free includes sources such as nuclear power as well as renewables, and the reported figure does not mean the utility has eliminated fossil-fuel generation.
What is PNM asking regulators to approve?
PNM has proposed nearly 1.7 gigawatts of new resources: 800 megawatts of wind, 240 megawatts of solar and 610 megawatts of battery storage, along with a 40-megawatt gas peaker plant called La Luz II.
Why is the proposed gas plant controversial?
Some environmental groups say adding a gas-fired plant conflicts with New Mexico’s commitment to phase out fossil fuels. PNM says the plant is needed as part of a package to meet reliability requirements. Regulators have yet to resolve the dispute.
Does reaching the 50% target mean New Mexico has completed its transition?
No. The law sets later benchmarks of 80% renewable by 2040 and 100% carbon-free by 2045. The state must continue adding resources and address reliability, rising demand, utility ownership concerns and the effects on fossil-fuel workers.
Source: rss
