Renewable Energy in New Mexico

New Mexico is rapidly emerging as a renewable energy leader, driven by abundant solar and wind resources, supportive state policy, and growing infrastructure investments. In 2019, the state updated its Renewable Portfolio Standard (RPS), mandating that investor-owned utilities achieve 100% renewable electricity by 2045, with interim targets of 50% by 2030 and 80% by 2040. Rural cooperatives have until 2050. These aggressive goals explicitly exclude fossil and nuclear sources, focusing solely on zero- or low-emission technologies.

Solar and Wind Energy Expansion

New Mexico ranks among the top five states for wind energy potential and has seen rapid growth in wind and solar deployment. Wind energy provided 38% of in-state electricity in 2023, with 4,400 MW of installed capacity. Projects like the 3,515 MW SunZia Wind Farm and its 550-mile HVDC transmission line underscore the state’s role as a major energy exporter.

Solar PV production has also surged, increasing from modest levels in 2008 to 2,613 GWh in 2023. Installed solar capacity reached 2,854 MW by 2024. While the state has no concentrating solar power (CSP) plants for electricity generation, Sandia National Laboratories hosts the National Solar Thermal Test Facility, which supports CSP research and development.

Underdeveloped Renewable Resources

Despite high potential, certain renewable sources remain underutilized. Hydropower plays a minor and variable role due to the state’s arid climate, while biomass is still in early stages of development. Feasibility studies like the one for a woody biomass facility in Cimarron aim to leverage forest waste for energy and wildfire mitigation.

Grid Integration and Storage

Rapid renewable deployment presents grid integration challenges. Key projects like SunZia and Riosol are expanding high-voltage transmission capacity to export power and stabilize the grid. The state is exploring pumped hydro storage, with large-scale projects proposed in San Juan County and Navajo Nation lands, though some face regulatory and tribal opposition.

Workforce and Economic Opportunities

The expansion of renewables is contributing to economic development, especially in rural areas hosting large-scale wind and solar farms. As coal declines, state-supported workforce transition programs are helping communities shift to jobs in renewables, carbon capture, and related sectors.

Policy and Future Outlook

New Mexico’s strong policy framework, investment in infrastructure, and exceptional solar and wind resources make it a frontrunner in the U.S. clean energy transition. Continued support for underutilized resources like geothermal and biomass, as well as grid modernization, will be essential for meeting 2045 carbon-free electricity goals.