Over the past decade, New Mexico’s energy landscape has undergone a major transformation, marked by a steady shift away from coal and toward renewable sources and natural gas. This transition is clearly reflected in both installed capacity and capacity factor trends. Since 2010, coal capacity has significantly declined, while wind and solar installations have surged, making wind the state’s leading energy source by 2023. At the same time, natural gas capacity has remained stable, serving as a dependable backbone for the grid.

In terms of system performance, capacity factors reveal how efficiently each energy source operates. Natural gas (combined cycle) has emerged as the most reliable baseload resource, achieving one of the highest capacity factors in the state. Wind and solar, though increasingly important in New Mexico’s generation mix, continue to face challenges related to intermittency. Meanwhile, geothermal’s performance has been uneven, showing potential but also highlighting operational constraints.

Together, these trends underscore the importance of grid reliability and the evolving role of natural gas and flexible technologies in supporting renewable integration. They also point to the critical need for continued investment in storage, dispatchable power, and infrastructure upgrades to sustain a clean and resilient energy system.