Planning for Grid Decarbonization in New Mexico: An Energy Storage Perspective

Several states and territories have passed legislation to transition power systems from conventional thermal generation to renewable generation coupled with energy storage in an effort to combat climate change. As a result, grid planners are faced with the monumental task of determining the optimal resource mix and grid topology to meet the future economic and electric demand needs and comply with decarbonization policies. This paper investigates the future pathways for achieving the decarbonization goals in New Mexico, mandated by the New Mexico Energy Transition Act (NMETA). A long-term capacity expansion planning (CEP) model is developed and deployed for achieving this. CEP models are forward-looking optimization frameworks designed to evaluate future planning scenarios and analyze the possible pathways required to achieve the desired de-carbonization targets. Several planning scenarios with uncertain-ties encompassing technology maturation, economic assumptions, and generation retirement schedules are investigated. Multiple future planning scenarios incorporating several ES technologies that differ in cost, duration, and efficiencies are also evaluated. The CEP model is deployed using system data representing the Public Service Company of New Mexico and policies reflecting the NMETA, which enforces statewide carbon-free generation by 2045. This paper estimates the quantity and location of different resources, including energy storage, required to meet the NMETA targets,