New Mexico Hits 80% Clean Energy in Just 5 Years

While most utilities inch toward cleaner energy, New Mexico's Public Service Company sprinted there in just five years and kept electricity bills affordable along the way.

In 2021, coal and gas powered nearly 80% of PNM's electricity. By 2025, the company delivered 80% carbon-free power through solar panels, wind turbines, and batteries that store sunshine for nighttime use.

The transformation started with New Mexico's 2019 Energy Transition Act, which required utilities to reach 100% zero-carbon electricity by 2045. PNM will hit that goal five years early in 2040.

But the real driver wasn't just following the law. "We've understood more and more about climate and the impacts on climate of traditional fossil fuels," said Laurie Williams, PNM's senior vice president, who's spent 34 years with the company. "We've got to be part of solving the problem."

When PNM closed its massive San Juan coal plant in 2022, it replaced every bit of that power with renewables instead of building new gas plants. The company also helped 2,800 workers retrain for new jobs, beating the state's goal of 2,000.

New Mexico set aside special funding to support Native American communities affected by the coal plant closure. Money went toward sustainable agriculture, new solar projects, worker retraining, and direct payments to displaced workers.

Small solar installations across New Mexico more than doubled from 2020 to 2025. Over 13,000 PNM customers now have rooftop panels, and 16 community solar projects let people without suitable roofs buy shares of larger solar farms instead.

The Ripple Effect

New Mexico's clean energy boom is creating economic opportunity beyond just cheaper electricity. Williams sees renewable energy as "a chance to diversify the economy here in a way that could be really meaningful for the citizens and for the future of the state," especially important in a region heavily dependent on oil and gas.

The state earned the only "A" grade nationwide for how quickly it connects new renewable projects to the grid, thanks to fast application reviews, low connection fees, and transparent data sharing. In most states, new solar and wind projects wait years just to plug in.

While residential electricity prices nationwide spiked 32% over the last five years, New Mexico's rose just 7%. The state's average household electricity price of 14 cents per kilowatt-hour stays well below the national average of 18 cents.

Williams summed up the secret to making renewables work: "You must have significant levels of interconnection to all of your neighboring entities."

New Mexico proved that cleaning up the grid doesn't mean choosing between the planet and people's wallets.