DESRI, in collaboration with El Paso Electric (EPE), has announced the start of construction on the Santa Teresa Solar and Storage Project located in Doña Ana County, New Mexico. The project has reached its financial notice to proceed (FNTP), marking a key milestone that allows full-scale construction activities to begin. The Santa Teresa project consists of a 150-megawatt (MWac) solar energy facility combined with a 600 megawatt-hour (MWh) battery energy storage system (BESS).
Once operational, the project is expected to generate enough clean electricity to power approximately 60,000 homes served by EPE each year. It also supports the region’s transition toward more sustainable and resilient energy infrastructure. The project has a long-term, 20-year power purchase agreement in place with El Paso Electric, ensuring a stable source of clean power for the utility’s customers. This marks DESRI’s second project within EPE’s service area. Their first project, known as Carne, includes a 130 MWac solar plant and a 260 MWh BESS and began construction in 2024.
The construction of the Santa Teresa project is being financed by a consortium of financial institutions. DNB Bank ASA, New York Branch, and National Bank of Canada are acting as Joint Coordinating Lead Arrangers. Additional financial partners include Sumitomo Mitsui Trust Bank, Limited, New York Branch, and Korea Development Bank. Deutsche Bank Trust Company Americas is serving as the Administrative Agent for the financing.
Hy Martin, Chief Development Officer of DESRI, mentioned, “The Santa Teresa Project is a cornerstone of DESRI’s growing partnership with El Paso Electric and a prominent example of how cost-effective solar and storage assets can power New Mexico’s future. The Project not only contributes to regional grid stability via large-scale energy storage, but it also underscores our shared commitment to clean energy and economic development in Doña Ana County and across the state.”
Dave Hawkins, Vice President of System Planning and Operations Support at El Paso Electric, stated, “This Project is about more than adding solar power – it’s about delivering lasting value to the communities and businesses we serve. By providing clean energy and added capacity to the entire region, we’re strengthening reliability, supporting sustainability and investing in future economic development growth.”
Jaehong Park, CEO of LG Energy Solution Vertech, mentioned, “During this hot summer, energy demand continues to rise. We’re proud to be a part of a project that helps support the community by adding clean energy technology to the electric grid, and to do so using U.S. made battery systems. This is a pivotal moment for energy storage, and we’re working with DESRI and El Paso Electric to build on the momentum we’ve seen in the American energy storage market.”
The battery storage systems for the project will be provided by LG Energy Solution Vertech, which will also deliver the AEROS™ software suite to manage battery operations. The company will support the project long-term through a service agreement. SOLV Energy has been selected as the engineering, procurement, and construction (EPC) contractor and will also be responsible for ongoing operations and maintenance once the facility becomes operational. The Santa Teresa project is an important step toward expanding clean energy access and storage capabilities in the southwestern United States.
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