Energy Storage Development & Planning
The bill will require qualifying public utilities to incorporate energy storage solutions into their integrated resource plans, which is a structured method for utilities to forecast their future energy needs and resources. Starting with planning cycles that begin after October 1, 2023, utilities will need to submit plans that include their strategy for meeting the specified storage targets. This requirement is viewed as a crucial step for enhancing grid reliability and advancing New Mexico's transition towards a more sustainable energy landscape.
Senate Bill 456, also known as the Energy Storage Development & Planning Act, focuses on establishing a proactive approach to energy storage in New Mexico. The bill mandates a deployment target of 1,000 megawatts of new energy storage capacity by the end of 2028 and an additional 1,000 megawatts by 2033. This initiative aims to support the state's renewable energy goals by ensuring that sufficient energy storage is available to manage and balance fluctuating energy supply and demand effectively.
While the bill is largely supported for its potential to enhance energy reliability and align with renewable energy initiatives, there are concerns about the implications for costs and technological feasibility. Critics argue that achieving the ambitious storage targets could strain resources and lead to increased costs for consumers if the investments in energy storage technologies do not provide anticipated efficiencies or savings. This has led to discussions about the adequacy of existing infrastructure and the readiness of utilities to meet the new requirements.