Will carbon capture help clean New Mexico’s power, or delay its transition?

Shiprock, a sacred site to the Diné (Navajo People) is seen in the distance, the view mired in a smoky haze. Credit: Jeremy Wade Shockley / for the Energy News Network

As New Mexico lawmakers were putting the finishing touches on landmark legislation to help workers and communities transition from the closure of the state’s largest coal plant, the city of Farmington had other plans. 

“We have reached a milestone that few people thought remotely possible,” City Manager Rob Mayes told the local newspaper in February 2019. An agreement was announced between the city and a New York holding firm called Acme Equities to keep the aging San Juan Generating Station operating past its scheduled 2022 retirement date. The state’s largest utility, Public Service Company of New Mexico, or PNM, had planned to retire the massive coal-fired power plant, eliminating hundreds of jobs and millions in local tax revenue that the 2019 Energy Transition Act intended to address. After working behind the scenes for months, though, local officials instead threw their support behind an obscure real estate hedge fund promising to keep the plant and its associated mine open by installing the largest carbon capture system on a power plant to date — by far. The $1.4 billion plan baffled energy-economics experts.

Ambitious renewable goals on deck as new political era dawns in New Mexico

New Mexico was in the first wave of states to require gradually increasing amounts of renewable energy such as wind, solar and geothermal to power its electrical grid. Signed into law in 2004, the state’s Renewable Energy Act required private utilities to ensure that 20 percent of the electricity they provide to consumers comes from those sources by 2020. Since then, what was once a novel idea has gone mainstream. Twenty-nine states, the District of Columbia, and three territories have similar laws. More than half have higher goals than 20 percent.

Martinez Energy Plan Lacks Long-Term Focus

In her State of the State, Gov. Martinez called for developing “every kind of energy we can produce in New Mexico.” But a closer look at the administration’s recent energy plan reveals that the state still lacks a long-term plan for New Mexico’s economic future, even as the climate warms, energy prices drop, and a new era of federal regulations dawns.