DE Shaw Renewable Investments (DESRI) has achieved financial close for a 200MW solar and 100MW battery project in New Mexico.
The developer has now begun initial construction of the San Juan 1 project which will be located near the former San Juan Generating Station in San Juan County.
The development is a critical capacity replacement to the San Juan Generating Station, which was retired in 2022, and will interconnect to the grid using existing infrastructure from the retired plant.
The project has a 20-year power purchase agreement with the Public Service Company of New Mexico (PNM) and it is anticipated to commence operations in mid-2024.
Photosol USA initially developed the site before selling it to DESRI in 2022.
San Juan 1 is the first phase of a larger project that is expected to deliver 400MW of clean power to the grid when fully developed and constructed.
“DESRI is thrilled to announce the start of construction at San Juan 1,” said DESRI chief commercial officer Thomas de Swardt.
“As a capacity replacement for a retired coal generator, the project is an important part of New Mexico’s transition to state of the art, cost-effective renewable energy, firmed by battery storage,” de Swardt added.
“We deeply appreciate the partnership of PNM, San Juan County, the San Juan Citizen’s Alliance, the Project’s lenders, and numerous other stakeholders and supporters in the community in achieving this milestone.”
San Juan 1 is DESRI’s third project in New Mexico and first project in San Juan County.
Financing for the construction of the Project was provided by a consortium of lenders including Société Générale as lead arranger, plus Zions Capital Markets, Huntington National Bank, Commerzbank AG and SuMi Trust.
SOLV Energy will serve as the engineering, procurement, and construction contractor for the solar and battery storage components, while EPC Services Company will construct the generation tie-line and project substation.
Additionally, SOLV Energy will provide ongoing operations and maintenance services to the facility once operational.