How New Mexico achieved 80% clean energy so fast.
New Mexico is rapidly transforming its electricity supply, with the state's largest utility, Public Service Company of New Mexico (PNM), reporting 80% carbon-free power in 2025. This remarkable shift, driven by ambitious state policies like the Energy Transition Act and a strong commitment to sustainability, has unfolded in just five years. Moving away from fossil fuels like coal and gas, New Mexico is demonstrating how quickly a region can embrace clean energy, benefiting both the environment and its citizens with cleaner air and stable energy costs.
New Mexico's journey to clean electricity is a powerful example of how quickly an energy system can evolve. Just five years ago, in 2021, nearly 80% of PNM's electricity came from climate-warming coal and gas plants. Today, thanks to significant investments in solar, batteries, and wind, the company is largely powered by renewable sources, often ahead of schedule.
This dramatic change is rooted in the state’s 2019 Energy Transition Act, which set ambitious goals, including 100% zero-carbon electricity by 2045. PNM is now projected to meet this critical target five years early. Beyond legal requirements, the company’s leadership emphasizes a cultural shift, recognizing the urgent need to address climate change and contribute to a healthier planet.
The transition has meant closing major coal facilities, like the San Juan Generating Station San Juan Generating Station closed. But New Mexico hasn't just replaced old energy with new; it has invested in its communities. Funds from the Energy Transition Act have supported retraining for over 2,800 workers 2,800 workers trained, aiding those affected by the plant closures. This initiative also aims to diversify the state’s economy, traditionally reliant on oil and gas, by leveraging its abundant renewable resources. Specific programs also ensure Native American communities receive support during this shift a fund.
Citizens are also playing a vital role. Small-scale solar installations on homes have more than doubled from 2020 through 2025 more than doubled. For those unable to install panels, community solar projects allow residents to share in large solar farms, expanding access to clean energy for everyone. This collective push towards electrification is not only good for the environment but also for wallets.
While nationwide residential electricity prices have jumped by 32% in the last five years 32%, New Mexico has seen a modest 7% increase just 7%, keeping household bills among the lowest in the country among the lowest. The state’s efficient interconnection policies, which quickly and affordably integrate new renewable projects into the grid, have earned it an “A” grade an “A” from leading energy councils. This proactive approach ensures that the shift to cleaner energy is not just possible, but also practical and beneficial for all, helping to tackle the generational challenge of climate change head-on.