New Mexico is a leader in utility-scale batteries that store excess electricity and release it back to the grid. The batteries mean solar or wind energy can be more stable and reliable. Over 18 major battery projects now operate in New Mexico, often paired with solar farms.

NEW MEXICO’S MOONSHOT OF INVESTMENTS

Energy, Land and Water

This is what good government looks like

New Mexico is an energy state. Since 2019, oil production—mostly on federal lands in the Permian Basin—has doubled. A recognized energy leader, the state holds the title of second-largest oil producer in the U.S.

Since 2019 and the passage of the Energy Transition Act, New Mexico is also a leader in transitioning from fossil fuels to renewable energy.

Transitioning to Renewables

The Energy Transition Act sets renewable energy standards for utilities and rural electric cooperatives, including:

40% renewable energy by 2025
50% renewable energy by 2030
80% renewable energy for utilities by 2040
100% zero-carbon resources for utilities by 2045

New Mexico has already met and surpassed its 2025 goal.

As a whole, the state generated nearly 60% of its electricity from renewable resources during the first 10 months of 2025.

The renewable sector is bolstering our state’s economy, creating thousands of jobs and generating tax revenue for public schools. It also positions New Mexico to be a key renewable energy exporter. The state’s investment in renewable energy means New Mexico will remain an energy state after the world has moved on from oil and gas.

State government support for renewable energy

Click to see our Clean Energy Map

With plentiful sunshine, wind, and geothermal resources, New Mexico has more renewable energy potential than any other state, according to the Office of Renewable Energy, a department of the State Land Office. The State Land Office can lease its nine million acres to renewable energy companies, creating partnerships that can earn more money for public schools, universities, and hospitals throughout the state. Those partnerships also create jobs, advance clean energy, save taxpayer money, and care for the land. One example: a wind farm spanning more than 10,000 acres is scheduled to be built east of the Sandia Mountains in Torrance County. When operating at full capacity, it will generate enough electricity to serve over 60,000 homes, while also generating almost $100 million for New Mexico’s public schools over the lifetime of the agreement. State Land Commissioner Garcia Richard says, “Before I came into office, there wasn’t a comprehensive, strategic approach to developing renewable energy on state lands. That has all changed under my watch, and renewable energy companies now know the State Land Office is the place to do business.” It’s one thing to generate energy and another to transport it. The New Mexico Renewable Energy Transmission Authority (RETA) plans, finances, buys, and develops transmission lines and storage projects so renewable energy can reach local markets and support economic development. State incentives and mandates are helping renewable projects move forward even as the federal government cancelled 321 grants for energy projects across the nation. For example, the New Mexico Energy, Mineral, and Natural Resources Department (EMNRD) helped cover canceled federal funding for the Kit Carson Electric Cooperative when the Trump Administration’s Department of Energy canceled a $15 million federal grant the Biden Administration had awarded to help Kit Carson build microgrids in rural areas that face high wildfire risk. The EMNRD also offers tax credits to taxpayers, corporations, farms, and ranches for purchasing and installing solar energy systems.

Renewable Energy Sources

New Mexico’s eastern plains have massive wind farms that generate about 37% of New Mexico’s total electricity. New Mexico ranks seventh in the nation in electricity generation from wind power. New Mexico has one of the largest wind energy projects in US history: SunZia Wind and Transmission project. Located in central New Mexico, this massive initiative, developed by Pattern Energy, will transport clean power to other western states. It’s been compared to Hoover Dam—but it can distribute the generated electricity a lot faster.

With about 340 days of sunshine a year, New Mexico is an ideal location for solar energy systems. The state has recently brought thousands of megawatts of solar capacity online. The first-ever community solar plant opened in Valencia County in 2025. Low-income people can subscribe and save almost 20% of their electric bill. "We can have low cost, clean energy available for every household in New Mexico, regardless of their income. It's no longer a rich person's game,” says Dylan Connelly, director of the company that built the plant.

Geothermal energy provides a once-in-a-generation opportunity to diversify New Mexico’s energy economy. A report authored by New Mexico Tech and the New Mexico Bureau of Geology and Mineral Resources identifies over 160 gigawatts of untapped geothermal potential in the state. Geothermal uses heat from below the earth’s crust to create steam that turns a turbine, generating electricity. Like wind and solar, geothermal energy sends no pollutants into the air, but it also has the advantage of being able to serve customers around the clock. And dry-rock closed-loop geothermal energy technology requires no water. The Lightning Dock Geothermal Plant, about 20 miles southwest of Lordsburg, is New Mexico’s first utility-scale geothermal power plant. In 2025, XGS Energy and Meta entered into a $1 billion partnership to develop geothermal energy for New Mexico’s grid, putting New Mexico on the map as a hub for geothermal energy. New Mexico Tech has launched a geothermal certificate program and Sandia National Labs is working on removing barriers to geothermal energy.

Researchers at New Mexico’s national labs have been exploring fusion energy for decades. Building on Albuquerque’s proximity to those labs, and boosted by partnership with the state’s Investment Council, New Mexico Pacific Fusion, a commercial fusion energy company, will build a $1 billion research and manufacturing center in Mesa del Sol, south of the city. “The project will bring more than 200 long-term jobs to the state, along with hundreds more construction jobs, workforce development programs, and regional economic activity. It is an anchor investment for a broader fusion ecosystem in New Mexico,” said the governor’s office in a statement.

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Water

New Mexico knows it must protect its freshwater resources from changing climate patterns and groundwater overuse. In 2024, Governor Lujan Grisham announced a 50-year water plan for New Mexico that includes water conservation, new water supplies, and protections for watersheds. The 50-year plan is separate from the state water plans, which must be reviewed every five years. One solution in the 50-year plan is to desalinate brackish water (naturally occurring salty water from deep underground). Brackish water is different from produced water that results from oil extraction from rocks (fracking). When treated, brackish water can be used in manufacturing or cement-making. With further treatment, it could possibly also be used in agriculture or as drinking water. Using the more than 1 trillion gallons of brackish water that exists underground in New Mexico would mean we could use less of our fresh water. In 2025, the legislature established and funded the Strategic Water Supply. In 2026, it began fundinggrants to companies to drill, test, and map the supply of brackish water, make best recommendations for its use, develop a mobile treatment plant for rural and tribal communities (which the state will own), and in one case, filter water for cattle in Lake Arthur.

Dealing with pollution

While the federal government is stripping environmental protections, New Mexico is actively managing our land and water for the future.

Does New Mexico have the cleanest oil production in the country?

A 2023 study found that New Mexico methane rules slash emissions by half compared to Texas. Oil companies in New Mexico have to recover 98% of methane and cannot flare.

Why do New Mexico’s new Clean Transportation Fuel Standards matter?

New Mexico passed the Clean Transportation Fuel Standard (CTFS) in March 2024. It went into effect in April of 2026, aiming to reduce the carbon intensity of transportation fuels by 20% by 2030 and 30% by 2040, compared to a 2018 baseline. The standard creates the first clean fuel market in the U.S. Southwest, joining similar markets in California, Oregon, and Washington. The CTFS supports reduction of greenhouse gas emissions from transportation fuels—and transportation accounts for nearly a third of New Mexico’s greenhouse gas emissions. Under the standards, producers of cleaner fuels such as renewable diesel, biodiesel, ethanol, renewable natural gas, and electricity will receive credits, rewarding companies that invest in low-carbon solutions and creating a dynamic credit trading system to incentivize innovation. The standards will improve air quality and health, reducing asthma and other health problems associated with carbon-rich fuels.

What is New Mexico doing about “forever chemicals” like PFAS?

Some of the nation’s and world’s most extensive PFAS contamination is in New Mexico, especially near military bases, including Cannon Air Force Base in Curry County and Holloman Air Force Base in Otero County. PFAS-laden firefighting foams were used at the bases for decades. PFAS exposure has been linked to increased risks of cancers, thyroid disease, pregnancy complications, and impacts on the immune system. Because many PFAS chemicals persist and can build up in the body, even small, repeated exposures over time can matter. New Mexico’s Environmental Department is working on water filtration remedies for 15 water systems that tested above federal standards for “forever chemicals.” In recent years, the state has been tackling the effects of PFAS contamination by: ●Passing the PFAS Protection Act, which prohibits intentionally added PFAS in many consumer products. ●Adding PFAS firefighting foams to the New Mexico’s Hazardous Waste Act. This gives the state clear authority to regulate the management and cleanup by polluters and to shift the financial burden from taxpayers to the responsible party. ●Suing the U.S. Department of War to compel the military to halt non-emergency use of PFAS foam and compensate property owners harmed by its pollution. ●Launching the New Mexico Environmental Department’s PFAS Blood Testing Program, which offers free PFAS blood testing to adults who lived or worked near Cannon Air Force Base.

Who is cleaning up abandoned mines in New Mexico?

At least 350 abandoned uranium mine and mill sites still dot the New Mexico landscape. The New Mexico Environment Department is actively accelerating their cleanup. Over $20 million was recently redirected to reclaim uranium sites and to find those responsible and have them reimburse the state for the cleanup. The Abandoned Mine Program estimates there are over 15,000 areas where abandoned coal mining equipment, facilities, and legacy mine shafts continue to pose serious health, safety, and environmental hazards to rural and urban communities. The New Mexico Environment Department, alongside the Energy, Minerals, and Natural Resources Department, is directed to seal dangerous legacy shafts and manage water contamination.

What is New Mexico doing to protect air quality?

Ozone air pollution at ground level where we can breathe it causes serious health problems. New Mexico Environmental Department is relying upon a combination of mandatory state and federal regulations as well as voluntary public participation measures to reduce ozone concentrations in the state. The Ozone Precursor Rule, implemented in 2022, aims to reduce over 200 million pounds of ozone-causing emissions a year. It covers San Juan, Rio Arriba, Sandoval, Valencia, Chaves, Eddy, Lea, and Doña Ana counties. Even so, parts of southeastern New Mexico and Sunland Park have unsafe ozone levels and cannot comply with federal standards.