In collaboration with El Paso Electric (EPE), DESRI declared that the Santa Teresa Solar and Storage project (Santa Teresa, or the Project) has received financial notice to proceed (FNTP) and that work has begun. Located in Doña Ana County, New Mexico, Santa Teresa is a 150 megawatt (MWac) solar project that has a 600 megawatt-hour (MWh) battery energy storage system (BESS).
“The Santa Teresa Project is a cornerstone of DESRI’s growing partnership with El Paso Electric and a prominent example of how cost-effective solar and storage assets can power New Mexico’s future,” stated Hy Martin, Chief Development Officer of DESRI. “The Project not only contributes to regional grid stability via large-scale energy storage, but it also underscores our shared commitment to clean energy and economic development in Doña Ana County and across the state.”
“This Project is about more than adding solar power – it’s about delivering lasting value to the communities and businesses we serve,” stated Dave Hawkins, Vice President of System Planning and Operations Support at El Paso Electric. “By providing clean energy and added capacity to the entire region, we’re strengthening reliability, supporting sustainability and investing in future economic development growth.”
Santa Teresa and EPE have a power purchase agreement that lasts for 20 years. It is anticipated that the Project would provide enough renewable energy annually to power around 60,000 households owned by EPE customers. After the 260 MWh BESS Carne project and 130 MWac solar that started development in 2024, Santa Teresa is DESRI’s second project to start construction in EPE’s jurisdiction.
As joint coordinating lead arrangers, DNB Bank ASA, New York Branch, and National Bank of Canada, as well as Sumitomo Mitsui Trust Bank, Limited, New York Branch, and Korea Development Bank, supplied funding for the project’s construction. The Administrative Agent was Deutsche Bank Trust Company Americas.
“During this hot summer, energy demand continues to rise. We’re proud to be a part of a project that helps support the community by adding clean energy technology to the electric grid, and to do so using U.S. made battery systems,” stated Jaehong Park, CEO of LG Energy Solution Vertech. “This is a pivotal moment for energy storage, and we’re working with DESRI and El Paso Electric to build on the momentum we’ve seen in the American energy storage market.”
The LG Energy Solution Through a long-term service agreement, Vertech will supply the project with AEROSTM software and battery energy storage systems manufactured in the United States, along with ongoing support. In addition to being the project’s engineering, procurement, and construction (EPC) contractor, SOLV Energy will also handle continuing operations and maintenance when the project is up and running.
