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New Mexico reached the 50% renewable-electricity benchmark in its 2019 Energy Transition Act in 2024, six years before the 2030 deadline. Its largest utility, PNM, says 80% of its electricity was carbon-free last year and is seeking approval for more wind, solar and battery capacity, along with a small gas peaker plant.
New Mexico reached the 50% renewable-electricity benchmark in its 2019 Energy Transition Act in 2024, six years before the law’s 2030 deadline. The progress puts the state ahead of its planned timetable, while its largest utility, Public Service Company of New Mexico (PNM), seeks approval for new clean-energy resources to meet rising demand and a proposed small gas plant to support reliability.
The state law requires investor-owned utilities to reach 50% renewable electricity by 2030, 80% by 2040 and 100% carbon-free electricity by 2045. Canary Media reported that New Mexico reached the 50% renewable mark in 2024 and continued expanding its clean-energy supply. The milestones are requirements for investor-owned utilities, rather than a claim that every source of electricity consumed in the state is already renewable.
PNM reported that 80% of its electricity was carbon-free last year. In May, the utility 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 proposal also includes a 40-megawatt gas peaker plant, which would generate power when needed to help meet demand.
PNM’s record peak demand is 2.3 gigawatts, and it currently has 5 gigawatts of nameplate capacity installed, according to the report. The utility is planning for electricity consumption to grow by 40% by 2032. The proposed projects could also help it leave its 200-megawatt stake in the Four Corners coal plant by July 2031; the plant is in New Mexico and operated by Arizona Public Service.
The Next Test: Reliable Clean Power
Meeting the 2030 renewable benchmark early shows that New Mexico’s statutory targets have been accompanied by utility investment and projects, not just policy commitments. But reaching higher shares of clean electricity brings a different planning challenge: wind and solar output varies, while customers need electricity at all hours. Storage and dependable backup capacity are central to the next phase, especially as demand is projected to rise.
The proposed gas peaker has become a focal point of that trade-off. Supporters at PNM say the plant is needed alongside the renewable and battery projects to satisfy reliability requirements. Some environmental groups argue that adding fossil-fuel capacity conflicts with the state’s commitment to move away from fossil fuels. Regulators must weigh those claims against the utility’s resource and reliability analysis.
The decision could affect more than a single procurement. It will help determine how PNM approaches its coal stake and future demand while pursuing the state’s 2040 and 2045 goals. Consumers are also watching PNM’s pending takeover by Blackstone, which the report says has raised concerns about whether the utility’s clean-energy direction could change.
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How New Mexico Set Its Targets
New Mexico’s Energy Transition Act, passed in 2019, set a staged path for investor-owned utilities: 50% renewable by 2030, 80% by 2040 and carbon-free electricity by 2045. The early 50% achievement places the state ahead of that first deadline, but it does not mean the later milestones have already been met.
The state’s wind and solar resources and available land have supported early additions of renewable generation. PNM’s planning challenge is increasingly about matching that variable output to demand. The utility says its analyses test whether proposed power resources can cover every hour over a long planning period, including periods when wind and solar production is low.
PNM has a small share of nuclear power from Arizona, according to Canary Media, but the report says other possible firm, low-carbon technologies—including long-duration storage and advanced geothermal—are not currently competing in the utility’s procurement process at economic prices. That leaves the utility weighing currently available resources alongside longer-term options.
“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
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Gas Plant Approval Still Pending
Regulators have not yet resolved the dispute over La Luz II, PNM’s proposed 40-megawatt gas peaker. Environmental groups oppose additional fossil-fuel generation, while PNM says the full portfolio is needed to meet reliability and resource-adequacy requirements. The final regulatory decision and any conditions attached to approval remain unclear.
The timing and effects of PNM’s pending Blackstone takeover are also unresolved. The report says customers are concerned it could alter the utility’s clean-energy course, but it does not establish what changes, if any, the acquisition would bring. The 2024 renewable milestone also does not settle whether New Mexico will meet its later 2040 and 2045 requirements as electricity demand grows.
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January Hearings and Utility Plans
New Mexico’s regulators held hearings on PNM’s proposal in October, with further hearings scheduled for January to examine the gas plant specifically, according to Canary Media. Those proceedings will give regulators a chance to consider the utility’s reliability case and the environmental objections before deciding whether the package can proceed.
After the regulatory review, the practical questions will be which projects are approved, when they can be built and how they contribute to PNM’s plans for rising consumption and its proposed July 2031 exit from the Four Corners coal stake. The state’s early progress is established; the pace and makeup of its next stage will depend on those decisions and on whether the utility can add clean generation while maintaining reliable service.
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Key Questions
What clean-energy target has New Mexico already met?
New Mexico reached the Energy Transition Act’s 50% renewable-electricity benchmark in 2024, ahead of the 2030 deadline. The law sets later targets of 80% renewable electricity by 2040 and 100% carbon-free electricity by 2045 for investor-owned utilities.
How much of PNM’s electricity was carbon-free?
Canary Media reported that PNM produced 80% carbon-free electricity last year. Carbon-free power is not the same measure as renewable power; the report identifies a small allotment of nuclear power from Arizona as part of PNM’s supply.
What is PNM asking regulators to approve?
PNM’s proposed portfolio includes 800 megawatts of wind, 240 megawatts of solar and 610 megawatts of batteries, plus a 40-megawatt gas peaker plant. The proposal is awaiting regulatory review.
Why is the proposed gas plant disputed?
PNM says the 40-megawatt plant is needed to help the proposed portfolio meet reliability requirements. Some environmental groups oppose adding fossil-fuel generation because they say it conflicts with the state’s clean-energy commitments. Regulators have not issued a final decision.
Does reaching the 50% target mean New Mexico has completed its transition?
No. The 2024 achievement is the first statutory benchmark, not the final goal. Investor-owned utilities still face the 80% renewable target for 2040 and the requirement for 100% carbon-free electricity by 2045.
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