ACC News Brief

Clean Energy New Mexico, United States

New Mexico utility delivered 80% carbon-free electricity in 2025

Solar panels, battery storage, wind turbines, and transmission lines serve a New Mexico high-desert community.
Image credit: Affect Climate Change Inc. custom editorial artwork; evidence source: Yale Climate Connections

What happened

Public Service Company of New Mexico said 80% of the electricity it delivered in 2025 was carbon-free after investments in solar, batteries, and wind. The shift came within five years: coal and gas plants generated nearly 80% of the utility's electricity as recently as 2021, before the San Juan coal plant closed and its capacity was replaced with renewable resources.

Why it matters

New Mexico's experience shows how policy, storage, transmission, and worker-transition funding can move together. The cleaner grid has not required above-average household prices: Yale Climate Connections reports that state residential rates remained below the national average in May 2026.

What to watch

  • Whether PNM reaches its 2040 zero-carbon target five years ahead of the state deadline.
  • How planned community solar and transmission projects expand access and reliability.
  • Whether transition funds continue reaching displaced workers and nearby Native communities.

Sources & evidence

Topics

  • New Mexico
  • Carbon-Free Electricity
  • Solar Power
  • Battery Storage
  • Just Transition