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Tesla’s Megapack energy storage technology will be used to help New Mexico’s utility company (PNM) replace a 562 MW coal-fired power plant, the San Juan Generating Station. The coal-fired power plant is located near the San Juan mine and produced electricity at $ 45 / MWh in 2018 and 2019.
Energy storage news said PNM plans to source power from 950 MW of solar and storage facilities by next year while phasing out the coal-fired plant. PNM will build on the Arroyo solar and storage project, which is a 300 MWac solar photovoltaic power plant with 150 MWac / 600 MW of co-located battery storage. It has signed two separate off-take contracts for its solar production and storage and plans to reach 100% emission-free electricity by 2040.
DE Shaw Renewable Investments (DSRI), which develops, owns and operates long-term renewable energy projects, said it acquired the project from the original developer, Centaurus Renewable Energy. Centaurus initially negotiated the long-term agreements with PNM and entered into a $ 70 million construction bridging facility before DSRI purchased it.
DSRI is focused on the solar photovoltaic and wind energy sectors and Arroyo is looking to optimize its first co-located solar-plus-storage project, which will be built using Tesla Megapack battery storage units. The Megapack will be assembled and integrated by Affordable Solar Installation, a local company.
The article says the solar farm will use NEXTracker photovoltaic solar tracking technology and Sund Construction will build it. Electrical Consultands Inc will design the substation and switching station, and EPC Services will build the infrastructure. SOLV, which is a subsidiary of both Tesla and Swinerton Renewable Energy, will provide operation and maintenance.
NM Generation Vice President Tom Fallgren said, “As PNM continues on its path to 100% carbon-free electricity, we look forward to the first of large-scale batteries and associated solar power to come on. our system. This project demonstrates New Mexico’s leadership across the country in reducing our carbon footprint.
DESRI CEO David Zwillinger said: “The integration of battery storage into solar projects has the potential to change the landscape of the renewable energy industry in the future, and we are excited to offer storage capacities at PNM as part of the Arroyo project. “
The fight to prevent the coal-fired plant from retiring
In October 2020, KRQE reported that a proposal would keep the San Juan plant open using new technology. The hope was that it would continue to operate for another decade. KRQE said, “A further $ 1.4 billion overhaul would help it meet tougher environmental requirements. The plant would be equipped with carbon capture technology that the Energy Ministry said would help protect jobs as well as tax revenues. “
In July 2021, the Santa Fe New Mexican shared a bit more detail about this plan and its challenges, noting the skepticism from New Mexico lawmakers. The article noted that this was a $ 1.5 billion project and was overdue and did not have all of its funding in place. Republicans were all in agreement while Democrats were skeptical. Farmington Mayor Nate Duckett told members of the Legislature’s Water and Natural Resources Committee that his town was not ready to abandon the plant:
“Like everyone would like us to do.
“Yes, we would love to see some of those milestones completed and the dates originally set, but it’s a big, hairy and daring goal.
“You are trying to take a coal-fired power plant that is currently in operation and [retrofit] it, by transferring ownership, by adding new infrastructure in there, by putting in place new technologies that have been tried and used successfully in other places, but are now working on a scale never seen before.
“It’s huge, but it takes people with vision, people with boldness and tenacity and all of those things to go out there and actually try to do these things.”
Democratic leaders were worried about the unknowns and Enchant Energy, which is the city’s partner, wants to shift long-term responsibility to the state government. Enchant Energy’s website said the project would contribute to the state’s goal of significantly reducing its carbon dioxide emissions while supporting the state’s economy:
“By employing hundreds of people in San Juan County and the Navajo Nation providing reliable, low cost wholesale electricity.
“This is a rare opportunity to support such an environmentally friendly policy while simultaneously preserving hundreds of high paying jobs that simply are not otherwise available to residents of San Juan County and the Navajo Nation. A real win-win.
The report of Energy storage news seems to suggest that the plant will be removed and replaced with renewable energy. So far, there has not been a major announcement that I could find on the proposal to keep the plant operational.
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