El Paso Electric (EPE) Company, a utility serving the southern United States, has announced the issuance of a Request for Proposals (RFP) aimed at sourcing renewable energy projects to meet the growing energy demands of its customers in New Mexico.
The RFP specifically seeks proposals for both long and short-term renewable energy projects with an annual output of 150,000 megawatt-hours (MWh) that are expected to be commissioned by 2027. Interested parties have until Friday, November 3, to submit their bids.
This initiative aligns with the New Mexico Renewable Energy Act (REA) and the associated Renewable Portfolio Standard (RPS), which mandate that utilities operating in the state must achieve 40% of retail energy sales from renewable sources by 2025, with this target increasing to 50% by 2030.
In a significant move earlier this year, EPE inked a 20-year power purchase agreement (PPA) with DE Shaw Renewable Investments for the 130-megawatt Carne solar PV project in New Mexico. Furthermore, in September, the utility secured another 20-year deal, this time for 150 megawatts of solar-plus-storage assets in the state, demonstrating its commitment to renewable energy adoption.
EPE has expressed its openness to various generation technologies in response to the RFP, underlining its dedication to exploring diverse and sustainable energy sources.
Kelly A. Tomblin, President and CEO of EPE, highlighted the utility's strategic focus on environmental sustainability and meeting customer demand. She stated, “We continue to experience a two percent customer base growth rate year-over-year, which inevitably leads to an increase in energy usage and customer demand. Leading environmental sustainability is one of our strategic anchors as we continue to develop and innovate how we reliably provide energy to our customers in compliance with the New Mexico Renewable Energy Act. That is why we are looking forward to integrating greater amounts of renewable energy.”
The move towards renewable energy aligns with broader industry trends, as a recent report from think tank Edison Energy indicated a 3% average decrease in Power Purchase Agreement (PPA) prices in the United States during Q2 2023. This decline was primarily driven by the expansion of renewable energy in Texas' ERCOT market.
