PNM issues RFP for 456 MW of resources, pushing for renewables and storage

Dive Brief:

Public Service Company of New Mexico (PNM) has issued a request for proposals for 456 MW of resources, including renewable energy and battery storage resources.
The resources are identified in the utility’s 2017-2036 integrated resource plan with the understanding that the coal-fired San Juan plant will close at the end of 2022.
The utility announced earlier this year that it plans to phase out coal-fired generation completely, with plans to fill that gap with natural gas, storage and solar energy.

Dive Insight:

PNM this spring said it plans to phase out its coal-fired generation by 2031. PNM plans replace the coal-fired energy with more renewables, natural gas and energy storage, while maintaining its stake in the Palo Verde Nuclear Generating Station.

The utility’s plans coincide with efforts in New Mexico to reduce the state’s emissions profile. The state’s Attorney General is pushing regulators to impose limits that would reduce power plant carbon dioxide emissions by 4% annually through 2040.

PNM plans to eliminate coal from its portfolio mix following the retirement of the San Juan Generating Station.

PNM

That proposal was narrowly approved by the state’s Public Regulation Commission in October. Also this year, two Democratic lawmakers in the state proposed an expansion of New Mexico’s renewable portfolio standards to 80% by 2040 from 20% by 2020.

New Mexico is embracing energy storage as well. The PRC in August unanimously approved a measure that adds storage to the state’s IRP rules.

The amendment created a separate category for storage, but rejected a suggestion to adopt an energy storage target. PNM says it will welcome energy storage resources in its upcoming RFP, but did not give further details. Notices of intent to bid in the upcoming RFP are due Nov. 30, and proposals are due Jan. 30, 2018.