DESRI and El Paso Electric Break Ground on 150 MW Solar and Storage Project in New Mexico

DESRI, in collaboration with El Paso Electric (EPE), has announced the start of construction on the Santa Teresa Solar and Storage project after reaching financial notice to proceed (FNTP). Located in Doña Ana County, New Mexico, the project includes a 150 MWac solar facility paired with a 600 MWh battery energy storage system (BESS). Under a 20-year power purchase agreement with EPE, Santa Teresa is expected to supply clean energy to approximately 60,000 customer homes annually. This marks DESRI’s second renewable project in EPE’s service territory, following the Carne project, which began construction in 2024.

“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,” said Hy Martin, Chief Development Officer of DESRI. “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.”

“This Project is about more than adding solar power – it’s about delivering lasting value to the communities and businesses we serve,” said Dave Hawkins, Vice President of System Planning and Operations Support at El Paso Electric. “By providing clean energy and added capacity to the entire region, we’re strengthening reliability, supporting sustainability and investing in future economic development growth.”

Construction financing was secured through a consortium of lenders, including DNB Bank ASA, New York Branch, and National Bank of Canada as Joint Coordinating Lead Arrangers. Additional financial support came from Sumitomo Mitsui Trust Bank, Limited, New York Branch, and Korea Development Bank, with Deutsche Bank Trust Company Americas serving as the Administrative Agent.