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New Mexico sees burst of wind energy development

In separate plans, two companies are aiming to have completed more than 1,800 MW of new wind energy capacity in New Mexico by the end of next year.

Pattern Energy Group 2 LP, known as Pattern Development, said Sept. 4 it has completed the third phase, totaling 220 MW, of its 544-MW Grady Wind Energy Center in Curry County, in eastern New Mexico.

At the same time, Pattern, an affiliate of Pattern Energy Group Inc., said that it intends to "ramp up" construction in early 2020 of more than 800 MW of new wind generating capacity in central New Mexico. A company spokesman said Sept. 4 there will be multiple power purchase agreements involved in the additional capacity, but nothing that could immediately be disclosed.

In July 2018, Pattern Development signed PPAs with two California community choice aggregators that would be supplied by the proposed 200-MW Duran Mesa Wind Farm (Corona Wind Project) that is under development near Corona, New Mexico.

The Duran Mesa Wind project is part of the 800 MW of wind that Pattern CEO Mike Garland said the company would be ramping up.

New Mexico earlier this year approved legislation requiring all retail sales of electricity to come from zero-carbon sources by 2045, but project developers aren't necessarily keeping the output of their facilities within the state. The output of the newly completed Grady facility, for example, is committed under contract to the Sacramento Municipal Utility District.

According to the American Wind Energy Association, New Mexico had 1,732 MW of installed wind generation capacity at the end of the second quarter of 2019. AWEA said that 1,447 MW of wind was under construction at that time.

Pattern Development is selling the newly completed Grady facility to Pattern Energy and a private equity investor. Pattern Energy itself in August confirmed interest from third parties for the entire company.

Meanwhile, Xcel Energy Inc., whose utility subsidiary Southwestern Public Service Co. operates in eastern New Mexico and the Texas panhandle, on Aug. 30 said it has completed a purchase and sale agreement for the 522-MW Sagamore Wind Project, to be completed by the end of next year in Roosevelt County, N.M. This project and the completion of 478-MW Hale Community Energy wind project in Texas in late June are part of an effort by the utility to add more than 1,200 MW of new wind energy capacity to its portfolio. At the same time, Xcel Energy is investing billions of dollars in a nearly decadelong plan through 2022 to upgrade its transmission system in New Mexico and Texas.

Jeffrey Ryser is a reporter for S&P Global Platts. S&P Global Platts and S&P Global Market Intelligence are owned by S&P Global Inc.