New 150-Megawatt Solar Power Plant Greenlighted For New Mexico (And Texas)

Last Updated on: 19th July 2025, 07:47 pm

The outlook for the domestic solar industry has soured alongside the abrupt shift in federal energy policy this year. Nevertheless, some projects continue to slide through. A case in point is a the new 150-megawatt Santa Teresa solar power plant slated for construction in Doña Ana County, in New Mexico. The project is particularly interesting because it is yet another demonstration that the US solar industry can deliver more clean kilowatts, more quickly, than any other available energy resource.

More Clean Kilowatts, More Quickly

The new Santa Teresa project was okayed for construction to begin last week. Along with a 150-megawatt solar array, Santa Teresa includes a battery energy storage system of 600 megawatt-hours. If all goes according to plan, the whole system will be up and running before the end of 2026, which is just around the corner.

Electricity ratepayers in New Mexico won’t be the only ones to benefit from the new solar power project. Santa Teresa comes under the wing of the Texas utility El Paso Electric, which has about 465,000 customers spread out over an area that covers El Paso and other parts of Texas as well as New Mexico.

The 2026 timeline beats new gas power plants by a long shot. Despite efforts by the Trump administration to support more gas power plant construction, a shortage of turbines has contributed to construction delays stretching up to seven years for new gas projects in the US.

More Solar Power For Texas, From Global Investors

In addition to the speedy delivery of clean kilowatts, Santa Teresa is also of interest because it is an interstate electricity project, which is unusual for Texas. Unlike other states, Texas has largely walled itself off from the US regional grid system. With only a few minor exceptions, Texas is dependent on in-state resources, which substantially explains why Texas grid managers and policymakers have a long track record of supporting in-state wind and solar power projects.

That’s all in the past. Today’s Republican-dominated state legislature has the knives out for renewable energy. However, as the Santa Teresa project demonstrates, renewable energy from out-of-state can still trickle in here and there.

“This Project is about more than adding solar power — it’s about delivering lasting value to the communities and businesses we serve,” a spokesperson for El Paso Electric emphasized in a press statement announcing the go-ahead for the Santa Teresa project. “By providing clean energy and added capacity to the entire region, we’re strengthening reliability, supporting sustainability and investing in future economic development growth.”

Follow The Money To A New Solar Power Project

The leading renewable energy firm DESRI is the developer behind the Santa Teresa project, and that’s of interest as well. DESRI illustrates how and why the renewable energy transition is inevitable here in the US, despite recent efforts to prop up fossil power plants. US presidents come and go, but global investment firms can stick around for decades, and the US continues to be ripe territory for solar power investors.

DESRI comes under the umbrella of the DE Shaw Group, which describes itself as “a global investment and technology development firm with more than $60 billion in investment and committed capital as of September 1, 2024.” DE Shaw has offices in Europe and Asia as well as North America. All together, the firm has 70 solar and wind projects under its belt in various stages of development, totaling 9 gigawatts.

DESRI notes that the financing for the new solar power plant in New Mexico was provided by DNB Bank ASA, New York Branch, and National Bank of Canada acting as Joint Coordinating Lead Arrangers, along with Sumitomo Mitsui Trust Bank, Limited, New York Branch, and Korea Development Bank. Deutsche Bank Trust Company Americas also supported the financing as Administrative Agent.

Who Needs Gas When You Have Solar Plus Storage, Plus Geothermal Energy?

The US solar industry lobbied long and hard to convince Republican leadership in Congress that solar power can fulfill the nation’s growing thirst for energy, in combination with energy storage systems. That went over like a lead balloon, but shrinkage in the domestic solar industry is not necessarily going to guarantee long term growth for gas producers in the US.

One fly in the ointment is geothermal energy. Geothermal power plants are currently confined to a few scattered locations in the US, but new systems are emerging to take advantage of geothermal resources in other regions of the US, too.

Although new ESG (Enhanced Geothermal Systems) technologies have yet to crack the mainstream market, they are right on the edge and the timeline is not doing any favors for gas stakeholders.

The US startup XGS, for example, has a two-phase, water-saving, 150-megawatt advanced geothermal project underway in New Mexico. Under a partnership with Meta, the project is expected to be fully operational by 2030. That’s around the same time gas stakeholders expect their projects to crank up to speed — if they can get their hands on the turbines, that is.

The 150-megawatt project is just for starters. A recent report estimates that New Mexico holds about 160 gigawatts worth of geothermal resources within its borders, and state officials are not in a mood to just sit there and twiddle their thumbs about it. In June, New Mexico Governor Michelle Lujan Grisham affirmed the state’s support for the XGS project, emphasizing the potential to attract more data centers to the state with zero-emission energy.

What Will Happen To Solar Power Now?

As for the US solar industry, under normal circumstances, the US Department of Defense could be relied upon to help support the market for solar power. After all, the Air Force in particular was an early adopter of solar during the Obama administration, attracted by the benefits of energy security and resiliency. Now that costs have dropped and the supply chain has matured, the national security case for solar power and other renewables is stronger than ever.

However, these are not normal times. A few modest USAF solar projects have popped up here and there in recent months, and the newly established Space Force has embarked on a solar research project, but today’s DoD is not exactly in hot pursuit of non-fossil fuels.

Again, that doesn’t necessarily mean that the field is clear for new gas power plants. Keep an eye on that geothermal industry. The Air Force recently prequalified a roster of geothermal firms to bid on new Defense Department contracts, with XGS among them.

Photo (cropped): The leading renewable energy developer DESRI is behind a new 150-megawatt solar power plant in New Mexico, which will also send clean kilowatts into Texas, too (courtesy of DESRI).