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PNM Resources (PNM) Gets Nod for New Solar & Battery Project
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PNM Resources (PNM - Free Report) announced that its wholly-owned subsidiary, Public Service Company of New Mexico (“PNM”), received approval for new energy resources from the New Mexico Public Regulation Commission (“NMPRC”). This is expected to be added by the summer of 2026.
The PNM subsidiary filed this application in October 2023, following the release of a request for proposals in late 2022 to identify possible additional resources available to service customers in 2026.
The approval consists of 100 megawatts (MW) of solar and 310 MW of battery storage, including a 60 MW battery storage facility to be owned by the subsidiary.
The company’s system demand reached new record highs in the summers of 2022 and 2023, and the new resources of solar and battery storage capacity are planned to serve the growing demand from the subsidiary's retail customers.
Focus on Emission Reduction
PNM Resources is focused on exiting coal-fired generation by 2024, replacing the production with renewable sources. The company aims to achieve 80% clean energy by 2040 and net zero emissions by 2045, adding renewable energy sources to its production portfolio. Its portfolio became 60% carbon-free with the integration of 300-MW solar purchase agreements.
The PNM subsidiary serves its customers with a diverse mix of generation. It purchased power resources totaling 3.3 gigawatts (GW) of installed capacity. Combining the recent resources with other renewable and battery storage options, which have been previously authorized, should increase its total energy capacity to 75% carbon-free by 2026.
These initiatives can help the company to lower the cost of operations by focusing on new and advanced assets. New products and services may lead to added revenue streams. PNM Resources is also expected to help reduce transportation-related emissions with the approval for the implementation of the Transportation Electrification Program.
Renewable Energy Generation is on the Rise
Per the U.S. Energy Information Administration (EIA), U.S. energy-related carbon emissions decrease year over year in almost every quarter. Coal-related carbon emissions are expected to decline 4% in 2024 as coal-fired electricity generation continues to fall. Per the same report, the annual share of U.S. electricity generation from renewable energy sources should be 23% and 25% in 2024 and 2025, respectively.
Along with PNM Resources, some other electric power industry companies like Xcel Energy Inc. (XEL - Free Report) , NextEra Energy, Inc. (NEE - Free Report) and Avangrid (AGR - Free Report) are also adopting measures to meet clean-energy targets.
Xcel Energy is reducing coal usage. It aims to lower emissions by at least 80% within 2030 and achieve carbon neutrality by 2050. In February 2024, NSP filed its Upper Midwest Resource Plan with the MPUC that includes 3,600 MW of new wind and solar resources, 600 MW of battery energy storage and more than 2,200 MW of dispatchable resources by 2030. This will help reduce carbon emissions by more than 80%, potentially up to 88%, within 2030.
XEL’s long-term (three- to-five year) earnings growth rate is 6.4%. The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year increase of 6.3%.
NextEra Energy is aiming to reduce total carbon emissions by 67% within 2025 from the 2005 level. It continues to work on its strategy of making a long-term investment in clean-energy assets. The company expects to be able to add 33-42 GW of new renewables in the 2023-2026 period to the generation portfolio via clean-energy investments.
NEE’s long-term earnings growth rate is 8.03%. The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year increase of 7.3%.
Avangrid plans to create a clean generation portfolio and achieve Scope 1 and Scope 2 carbon neutrality goals by 2035. Also, it aims to reduce Scope 1 greenhouse gas emissions by 35% within 2025 from the 2015 baseline. It is focused on Vineyard Wind 1 project, an 806 MW utility-scale offshore wind project, which is expected to reduce carbon emissions by more than 1.6 million tons per year.
AGR’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year increase of 6.7%.
Price Performance
In the past month, shares of PNM have risen 0.3% compared with the industry’s 2.9% growth.
Image: Bigstock
PNM Resources (PNM) Gets Nod for New Solar & Battery Project
PNM Resources (PNM - Free Report) announced that its wholly-owned subsidiary, Public Service Company of New Mexico (“PNM”), received approval for new energy resources from the New Mexico Public Regulation Commission (“NMPRC”). This is expected to be added by the summer of 2026.
The PNM subsidiary filed this application in October 2023, following the release of a request for proposals in late 2022 to identify possible additional resources available to service customers in 2026.
The approval consists of 100 megawatts (MW) of solar and 310 MW of battery storage, including a 60 MW battery storage facility to be owned by the subsidiary.
The company’s system demand reached new record highs in the summers of 2022 and 2023, and the new resources of solar and battery storage capacity are planned to serve the growing demand from the subsidiary's retail customers.
Focus on Emission Reduction
PNM Resources is focused on exiting coal-fired generation by 2024, replacing the production with renewable sources. The company aims to achieve 80% clean energy by 2040 and net zero emissions by 2045, adding renewable energy sources to its production portfolio. Its portfolio became 60% carbon-free with the integration of 300-MW solar purchase agreements.
The PNM subsidiary serves its customers with a diverse mix of generation. It purchased power resources totaling 3.3 gigawatts (GW) of installed capacity. Combining the recent resources with other renewable and battery storage options, which have been previously authorized, should increase its total energy capacity to 75% carbon-free by 2026.
These initiatives can help the company to lower the cost of operations by focusing on new and advanced assets. New products and services may lead to added revenue streams. PNM Resources is also expected to help reduce transportation-related emissions with the approval for the implementation of the Transportation Electrification Program.
Renewable Energy Generation is on the Rise
Per the U.S. Energy Information Administration (EIA), U.S. energy-related carbon emissions decrease year over year in almost every quarter. Coal-related carbon emissions are expected to decline 4% in 2024 as coal-fired electricity generation continues to fall. Per the same report, the annual share of U.S. electricity generation from renewable energy sources should be 23% and 25% in 2024 and 2025, respectively.
Along with PNM Resources, some other electric power industry companies like Xcel Energy Inc. (XEL - Free Report) , NextEra Energy, Inc. (NEE - Free Report) and Avangrid (AGR - Free Report) are also adopting measures to meet clean-energy targets.
Xcel Energy is reducing coal usage. It aims to lower emissions by at least 80% within 2030 and achieve carbon neutrality by 2050. In February 2024, NSP filed its Upper Midwest Resource Plan with the MPUC that includes 3,600 MW of new wind and solar resources, 600 MW of battery energy storage and more than 2,200 MW of dispatchable resources by 2030. This will help reduce carbon emissions by more than 80%, potentially up to 88%, within 2030.
XEL’s long-term (three- to-five year) earnings growth rate is 6.4%. The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year increase of 6.3%.
NextEra Energy is aiming to reduce total carbon emissions by 67% within 2025 from the 2005 level. It continues to work on its strategy of making a long-term investment in clean-energy assets. The company expects to be able to add 33-42 GW of new renewables in the 2023-2026 period to the generation portfolio via clean-energy investments.
NEE’s long-term earnings growth rate is 8.03%. The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year increase of 7.3%.
Avangrid plans to create a clean generation portfolio and achieve Scope 1 and Scope 2 carbon neutrality goals by 2035. Also, it aims to reduce Scope 1 greenhouse gas emissions by 35% within 2025 from the 2015 baseline. It is focused on Vineyard Wind 1 project, an 806 MW utility-scale offshore wind project, which is expected to reduce carbon emissions by more than 1.6 million tons per year.
AGR’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for 2024 EPS indicates a year-over-year increase of 6.7%.
Price Performance
In the past month, shares of PNM have risen 0.3% compared with the industry’s 2.9% growth.
Image Source: Zacks Investment Research
Zacks Rank
PNM Resources currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.