New Mexico’s mega electricity utility PNM has tapped into a new financial power, which will boost its operations towards exploring renewable energy. The latest merger between PNM and AVANGRID will generate about $8.3 billion in the capital, according to financial experts in New Mexico’s renewable energy system. Patrick O’Connell of the Western Resource Advocates stated that New Mexico could generate energy from wind and solar resources if this technology is fully exploited. He added that AVANGRID generated renewable energy on a miniature scale should reflect once the merger becomes active.
Moody’s Investors Service explained that this merger’s authentication would help PNM’s subsidiary, Public Service Company of New Mexico (PNM), to receive more capital to substitute San Juan and Four Corners coal systems meeting the needs of clean energy that the state demands. PNM needed a significant change to boost its transition to clean renewable energy before it finally came to terms with a merger with AVANGRID.
New Mexico’s Energy plan requires the state to receive half of its energy from renewables by the end of this decade before it can entirely switch to renewables in the next decade. Utility providers are in the race to take up San Juan and Four Corners’ shares while they transition to clean energy instead of letting them disappear like water under the bridge.
Recent research by the New Mexico Renewable Energy Transmission Authority (NM RETA) reveals that New Mexico has the wind and solar energy capacity to meet its electricity demands and even export some to neighboring states. This move will ease the state’s transition to clean energy if fully explored and stir up the neighboring state to take this challenge to the next level.
AVANGRID has demonstrated its potential to tap into this state’s renewables by initiating mega projects like the 300-MW El Cabo wind farm and the 306-MW La Joya wind farm, which will replace the existing old coal plants that are slowly degenerating and emitting more pollutive fumes.
The NM RETA research reveals that full exploitation of New Mexico’s renewable energy potential will require about $11 billion in investments to install renewable energy facilities and generate up to 11500 MW of power. Moody’s Robert Petrosino explained that the latest merger with PNM had put the plan into action, creating more chances of fully tapping the renewables.
Petrosino noted that PNM could retrieve its customers’ costs by increasing its utility rates, although energy regulators must authenticate the move. Since they have merged with AVANGRID, the capital retrieval will be a piece of cake once the projects take shape. Currently, PNM is the most affordable energy utility provider, which is achieving the targets set by the state while resuming most of its projects.
Finally, PNM will have to withdraw its ownership in coal plants in the next four years as part of its agreement in the merger with AVANGRID. This move is to ensure the utility does not have divided attention in venturing renewable energy.