A subsidiary of New Mexico utility of PNM Resources is to acquire the Western Spirit transmission project that will support the development of new wind power projects in the US state.
The sellers are Pattern Energy Group 2 and the New Mexico Renewable Energy Transmission Authority – the project partners developing and constructing Western Spirit.
PNM will acquire the transmission line on completion in 2021 for $285m.
Western Spirit will strengthen the existing PNM system and provide upgrades to accommodate 800MW of new wind energy, PNM said.
PNM Resources chairman, president and chief executive Pat Vincent-Collawn said: “While sunshine and wind may be plentiful in New Mexico, the ability to deliver the clean energy they can produce is limited by the capacity of transmission lines.
“Expansion of the PNM transmission grid makes it possible for Pattern Development to invest in wind energy resources in New Mexico.”
The acquisition is also subject to the necessary regulatory approvals.