Solar power on the rise in New Mexico as U.S. Sens. Heinrich, Lujan tout energy transition

Scientists at Sandia National Laboratory were poised to develop technology that could lower the cost of solar energy as the industry continued its growth in New Mexico.

Sandia was awarded a $25 million grant last week, per a news release from the U.S. Department of Energy, to build a facility for researchers and manufacturers to develop and test new concentrated solar power (CSP) systems.

The funding was part of the DOE’s broader goal of reducing solar power costs by 60 percent in the next decade through $128 million in investments across the nation.

The Sandia facility would be focused on a DOE goal of 5 cents per kilowatt hour for CSP plants by 2030.

CSP plants work by heating up manufactured particles using concentrated sunlight as they fall through open air.

After heating, the particles are stored and then passed through a heat exchanger while a fluid such as molten salt absorbs the thermal energy through tubular receivers.

After being cooled, the particles are moved back to the top of the receiver and the process starts again.

U.S. Sen. Ben Ray Lujan (D-NM) said the investment in his home state would advance the U.S.’ agenda of addressing climate change through increased use of renewable energy.

New Mexico is a top-producing oil and gas state, but many in the renewable energy sector and state leaders in recent months contended the state could also become a top exporter of renewable energies like wind and solar.

"To combat climate change, America must put clean energy within the reach of every household. Today's grant awards support research and development projects that will make solar panels more affordable and effective," Lujan upon the announcement of Sandia’s grant award.

"I applaud the Department of Energy for making this strong investment in our energy future."

U.S. Energy Secretary Jennifer Granholm said solar energy could be more affordable than fossil fuels like oil and natural gas.

She said the Department’s investments would bring more renewables on the U.S. power grid and advance President Joe Biden’s goal for the U.S. to use only “clean energy” by in the next 15 years.

“In many parts of the country, solar is already cheaper than coal and other fossil fuels, and with more innovation we can cut the cost again by more than half within the decade,” Granholm said.

“This first burst of funding will help us add even more affordable clean energy to the grid, jobs to communities across the country, and will put us on the fast track toward President Biden’s goal of 100 percent clean electricity by 2035.”

While the solar sector appeared ready to grow in the public sector, New Mexico’s other U.S. Sen. Martin Heinrich met with the private sector in a town hall last week hosted by the New Mexico Solar Energy Association – the state chapter of the American Solar Energy Society, a national non-profit that promotes solar power around the country.

During the meeting, Heinrich said renewable energy was “one of New Mexico’s greatest opportunities,” and could help bring in billions of dollars in private revenue along with thousands of jobs.

Heinrich reported Congress reached an agreement in December to extend federal tax credits for wind and solar power, following a previous such initiative from 2015.

A production tax credit for offshore wind projects was extended by five years, while an investment tax credit for commercial and residential solar was extended by two years and another for onshore wind was extended by year.

Heinrich said the transition from fossil fuels to renewable energy was of particular interest in New Mexico where thousands rely on oil and gas operations for jobs and the industry produces about a third of New Mexico’s state budget.

He pointed to state lawmakers’ passage of the Energy Transition Act in 2019 which set benchmarks for the state to achieve carbon-free energy by 2045 and for the Climate Solutions Act passed by the Legislature during the recently-concluded 2021 session to create a council tasked with addressing climate change. 

“This transition will not be easy,” Heinrich said during the meeting. “And it won’t come without costs—particularly for many of our fellow New Mexicans who have long worked to power our economy and supported their families with careers in traditional fossil fuel industries.”

On Friday, Heinrich introduced the Electric Power Infrastructure Improvement and Clean Hydrogen Incentives acts, which could improve the availability of solar while also increasing the market for “clean hydrogen” produced using renewable energy.

“Transmission investments are sorely needed to help connect and scale up new energy technologies that benefit consumers, including renewable energy, distributed generation, energy storage, and demand response, while also remaining a necessity for traditional power sources,” said Heather Zichal, chief executive officer of American Clean Power.

“The American clean power industry looks forward to working hard to advance these important pieces of clean energy legislation.”