DESI, El Paso Electric Gain Funding to start 150-MW/600-MWH Solar-Storage Project in New Mexico
Renewable energy project developer DESRI will start work on building more than 700 MW in combined solar energy and battery storage capacity in southern New Mexico.
DESRI, which has been known as D.E. Shaw Renewable Investments, is partnering with utility El Paso Electric on the Santa Teresa project, which has cleared final financial approval to commence construction. Santa Teresa, to be built in Doña Ana County, New Mexico, will connect 150 MW of new solar capacity with a 600-MWh battery energy storage system.
Santa Teresa is contracted under a 20-year power purchase agreement with El Paso Electric. It also is the second project developed by DESRI in the EPE utility service territory, following the 130-MW solar and 260-MWh battery storage Carne renewable farm.
"The Santa Teresa Project is a cornerstone of DESRI's growing partnership with El Paso Electric and a prominent example of how cost-effective solar and storage assets can power New Mexico's future," said Hy Martin, chief development officer of DESRI, in a statement. "The project not only contributes to regional grid stability via large-scale energy storage, but it also underscores our shared commitment to clean energy and economic development in Doña Ana County and across the state."
The Santa Teresa project is expected to generate enough carbon-free electricity to power approximately 60,000 customer homes each year. El Paso Electric provides generation, transmission and distribution service to more than 465,000 customers within 10,000 square miles of western Texas and southern New Mexico.
LG Energy Solution Vertech will provide U.S. made battery energy storage systems and the AEROS software suite for the project through a long-term service agreement. SOLV Energy will serve as the engineering, procurement, and construction (EPC) contractor for the Santa Teresa project and also provide ongoing operations and maintenance services once the project is operational.
Financing for the construction of the project was provided by DNB Bank ASA, New York Branch and National Bank of Canada as joint coordinating lead arrangers, Sumitomo Mitsui Trust Bank, New York Branch and Korea Development Bank. Deutsche Bank Trust Company Americas acted as the administrative agent