AC Ranch Solar project is moving forward
Christina Holt/News-Sun
The construction of a $400 million solar development project near Hobbs began in the summer of 2024 and is steadily moving forward.
AC Ranch Solar plans to have a ribbon cutting later this year and hopes to have phase one of the project operational in 2026, according to CEO and President of Akari Energy, LLC Vance Nobe.
The solar development is being constructed on about 1,500 acres west of Hobbs near the Maddox Station Power Plant.
The project will be completed in two phases, with about 182,000 solar panels installed during phase one on approximately 320 acres for $100 million providing 100 megawatts of power.
Phase two is expected to begin construction once phase one is completed. About 550,000 solar panels will be added on approximately 1,200 acres for $300 million providing 300 megawatts of power.
Nobe has been working with Southwest Power Pool and other entities in order to develop AC Ranch Solar for the last eight years.
AC Ranch Solar must obtain approval from SPP, the grid authority responsible for maintaining stability and safety for the electricity transmission systems in 14 states, prior to connecting to the grid, according to Nobe.
“There are a lot of technical details when connecting to the grid,” Nobe previously told the News-Sun.
Lea County Commissioners approved a letter of intent to issue an Industrial Revenue Bond for AC Ranch Solar, LLC on Nov. 21.
The approval of the resolution is the county declaring its intent to issue the IRB, which is the first step in the process. The approval does not bind the county to actually issue the bond.
The IRB would be issued by the county to raise capital to help fund the development of the solar facility and it may receive certain tax exemption benefits.
A benefit of issuing an IRB would be the tax abatements for the company but the company would be providing a payment to the county in leu of taxes, which then could be distributed to school districts throughout Lea County.
The property’s development will result in increased property tax revenues compared to its current taxation level.
If the IRB is issued, the property the AC Ranch Solar generating farm sits on would be owned by Lea County for the duration of the IRB — 25 years.
The land AC Ranch Solar is developing was purchased by the company and not Lea County, Nobe said.
The estimated taxes for the developed land at AC Ranch Solar would be about $350,000 annually.
“We’ve been doing work here in Lea County for over 12 years bringing solar to Hobbs CTECH, RMS Foods and the Boys and Girls Club,” Nobe told the News-Sun. “I have been working on AC Ranch Solar for over eight years. It’s a very important project.
“This county is a part of my family,” he said. “This will create jobs and economic development and this is just the first step. The most important permit that we’ve already received is the Interconnection Application and the Interconnection permission from SPP and Xcel.”
Investor and owner of AC Ranch Solar as well as the director of construction of Lydian Energy Edward Cherian previously said, “We develop, build, own and operate utility scale solar and battery storage products. We are a new company with private equity investment. I have a long energy background and we have a strong commitment to building very safe projects maximizing the amount of local labor. This is the first of potentially five or six large scale solar projects we would like to invest in Lea County. This is the smallest of them.”
