Hydropower plays a limited role in New Mexico’s energy mix, primarily through small-scale hydroelectric plants and water management systems. The state’s arid climate and variable water availability restrict hydropower development, but existing facilities, such as those on the Rio Grande and other river systems, contribute to the renewable energy generation.

hydroelectric electricity production in New Mexico has shown significant fluctuations over the past three decades. Production peaked at around 300,000 MWh in the early 1990s and again in the late 2000s, but has experienced multiple periods of decline, particularly in the early 2000s and post-2012. Since 2013, production has remained relatively
low and inconsistent, averaging between 100,000 and 200,000 MWh. This variability is likely influenced by changing water availability, drought conditions, and hydrological constraints in the state. While hydropower continues to play a small role in New Mexico’s energy mix, its contribution is diminishing, reinforcing the need for alternative sources such as geothermal to ensure energy security.

However, pumped-storage hydropower could be explored as a potential solution for energy storage and grid reliability, complementing intermittent renewable sources like wind and solar.

Overall, while New Mexico has potential for pumped hydro storage (PHS) development, project success hinges on thorough planning, community engagement, and compliance with regulatory frameworks. Notable projects include the 600 MW Sweetwater Pumped Storage Project in San Juan County and the 1,500 MW Carrizo Four Corners Pumped Storage Project, but they remain in early development. Additional PHS projects proposed on Navajo Nation lands faced setbacks after the Federal Energy Regulatory Commission (FERC) denied preliminary permits due to a lack of tribal consultation and support.