Solar power surging in Lea
Christina Holt/News-Sun
Lea County is shining bright as it will soon have 10 solar farms providing nearly 1,600-megawatts of power, expanding the county’s role in renewable energy and diversifying an oil and gas driven economy.
“Lea County is a great location for solar development and the number of utility-scale solar projects under development in Lea County certainly bears this out,” Economic Development Corporation of Lea County President Jennifer Grassham said. “We are particularly lucky to have large tracts of available, flat land with great sunshine almost every day of the year. We have long been supporters of all types of energy production, and solar is an important part of the energy production portfolio in Lea County.”
The 10 solar farms include utility owned projects, such as Southwestern Public Service Company and Xcel Energy, alongside projects from private developers, such as AC Ranch Solar, Tip Top Solar, Stellar Renewable Power and Pasilla Solar.
SPS currently operates four, 10-megawatt solar facilities near Jal, Eunice and Monument, while the other developers are still building solar projects across multiple locations in Lea County.
Xcel Energy is developing one battery storage system and two solar farms north of its Cunningham Generating Station, located about 10 miles west of Hobbs. When complete, the entire development will be about 6,500 acres.
The investment of about $550 million into these facilities will help meet growing customer demand and move the company closer to its goal of reducing carbon emissions by 80 percent by 2030, Senior Media Relations Representative Kaley Green said in an email to the News-Sun.
The Cunningham 1 Solar project will produce 72-megawatts of power for about $140 million, the Cunningham 2 Solar project will generate 196-megawatts for about $343 million and the battery storage system can store 36-megawatts for about $66 million.
Cunningham 1 Solar and the battery storage system are expected to be operational by April 2026, while the Cunningham 2 Solar is expected to operational by April 2027, Green said.
“Xcel Energy is investing in a balanced mix of energy resources, including wind, solar and natural gas, to meet rapidly-growing electric demand across our New Mexico and Texas service area, driven largely by industrial expansion,” Green said. “We are taking an ‘all of the above’ approach to ensure reliable power while keeping customer bills as low as possible. We are seeking regulatory approval to build new solar generation and extend gas units to meet peak demand and maintain system reliability.”
AC Ranch Solar is being developed on about 1,500 acres near the Maddox Station Power Plant along U.S. Hwy. 62 west of Hobbs.
The solar project will be completed in two phases, with about 182,000 solar panels constructed during phase one on approximately 320 acres for $100 million. The first phase of the project is projected to provide 100-megawatts of power, with completion scheduled by the end of 2026.
Construction on the second phase of the project will begin following completion of the first phase. Phase two will feature about 550,000 solar panels on approximately 1,200 acres, capable of producing about 300 megawatts of power at a final cost estimated at $300 million.
Phase two of the project will provide enough electricity to power 60,000 to 90,000 average homes. Phase one will provide electrical power to support approximately 16,500 homes.
On average, one megawatt of electricity from a solar generating plant in New Mexico is sufficient to power more than 234 homes, according to estimates by the Solar Energy Industries Association.
Lea County Commissioners held a public hearing on Oct. 31, adopting an ordinance to issue about $85 million in Industrial Revenue Bonds to assist with funding for AC Ranch Solar’s project. As part of the ordinance, the company will be granted tax-exemption benefits to help bring the project to fruition, including not paying property taxes.
“An IRB doesn’t have any public funding, investment, debt or loan tied to it. It’s simply a way of putting the property in Lea County’s name for property tax reasons and for gross receipts taxes on equipment during the construction phase of the project,” Lea County Manager Corey Needham previously said. “It is one of the most-used economic development tools to promote and bring businesses into an area.”
Tip Top Solar is developing a 110-megawatt project on 1,280 acres about 21 miles northwest of Jal on New Mexico Highway 128.
The solar facility will be able to power 29,000 homes annually, will provide 200 construction jobs and will have three full time employees, according to its website.
Lea County Commissioners approved its intent to issue IRB’s for the solar project in the amount of $195 million at its regularly scheduled meeting on Sept. 25.
Stellar Renewable Power is planning to build a $1.18 billion solar energy facility located about five miles southeast of Tatum, just north of McDonald.
Stellar has entered into a lease agreement with landowner Mark Gainer for 3,630 acres of undeveloped ranch land for the life of the solar project of 35 years.
The solar project will include 500-megawatts of solar power and 500-megawatt battery storage system. The plan is for the Stellar solar facility to interconnect into Southwest Power Pool’s current electrical transmission project.
“The transmission line is expected to be in service by 2026, then our project line coming in service several years after that in 2029,” Stellar Senior Manager Liam Gildea said at a county commission meeting on Feb. 27, 2025.
The project could potentially provide 250 – 300 jobs during the construction phase over the course of about two years and 40 full-time jobs would be needed to operate the facility.
Lea County Commissioners approved a resolution on April 10, outlining its intent to issue two IRB’s for the project. The first IRB is for Gainer Solar, LLC for as much as $672 million and the second is for Stellar Gainer Bess (battery storage), LLC to a maximum of $505 million.
Pasilla Solar and Battery Storage plans to build a 250-megawatt solar farm and a 250-megawatt battery storage system, with a proposed completion date in the Fall of 2028, according to Cleanview.
The facility will be located east of Lovington near the New Mexico and Texas border, according to a map provided by Solar Energy Industries Association.
Additional information regarding the Pasilla Solar development could not be found.
