New Mexico’s Public Service Company has rapidly shifted to renewable energy, delivering 80% carbon-free electricity in 2025 and driving some of the lowest electricity prices in the US.
- PNM delivers 80% carbon-free electricity in 2025
- State law mandates 100% zero-carbon by 2045, with PNM ahead of schedule
- Community solar and worker retraining support economic diversity
What happened
New Mexico’s largest utility, the Public Service Company of New Mexico (PNM), has rapidly transformed its energy supply from mostly coal and gas to mostly renewable sources. By 2025, PNM reported delivering 80% of its electricity from carbon-free sources including abundant solar power, wind turbines, and battery storage. This swift change occurred in just five years, driven by a combination of smart policy and investment.
A key driver is the 2019 Energy Transition Act, which requires utilities like PNM to reach 50% renewable energy by 2030, 80% by 2040, and 100% zero-carbon electricity by 2045. Impressively, PNM is on track to meet the zero-carbon mandate five years early by 2040.
Why it feels good
This shift is not just about compliance with regulations but a deep cultural commitment within PNM to address climate change and build a sustainable future. The closure of the San Juan coal plant in 2022 marked a major milestone, with all its capacity replaced by renewables. The transition creates new opportunities for job retraining and economic diversification in communities long dependent on fossil fuels.
Importantly, the Energy Transition Act includes funds to support workers who lost coal-related jobs, investing in retraining and community projects. Native American tribes near coal plants receive dedicated funds to help lead energy and economic transition efforts, reflecting a collaborative and inclusive approach to progress.
What to enjoy or watch next
New Mexico’s solar boom continues with more than 13,000 customers adopting rooftop solar and sixteen community solar projects in operation, with dozens more planned. This shared solar access makes clean energy available to many residents, including those who cannot install panels on their own homes.
Looking ahead, keep an eye on how expanding renewable energy supports economic growth and lowers electricity costs in the state. Investments funded by federal and state programs will further enhance solar access for low-income communities, helping New Mexico sustain its leadership and make clean power affordable for all.