DESRI starts construction for San Juan 1 project

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DE Shaw Renewable Investments (DESRI) has announced the achievement of financial close and the initiation of construction for the San Juan 1 Project.

This project, located in San Juan County, New Mexico, consists of a 200-megawatt (MWac) solar facility and a 100 MWac battery storage system. It is strategically positioned next to the former San Juan Generating Station, which was retired in 2022. The San Juan 1 Project will utilize existing infrastructure from the retired plant to interconnect with the grid.

The primary objective of the San Juan 1 Project is to replace the capacity lost from the decommissioned coal generator. It is the first phase of a larger development that aims to deliver 400 MWac of clean power to the grid once fully constructed. This project marks an important milestone in New Mexico’s transition to cost-effective renewable energy, complemented by battery storage technology.

Thomas de Swardt, Chief Commercial Officer of DESRI, expressed enthusiasm about the start of construction at San Juan 1, emphasizing its significance as a capacity replacement and New Mexico’s commitment to renewable energy with battery storage. DESRI acknowledges the collaboration and support received from various stakeholders, including PNM, San Juan County, the San Juan Citizen’s Alliance, project lenders, and the local community.

San Juan 1 is DESRI’s third project in New Mexico and its first in San Juan County. The facility has secured a 20-year power purchase agreement with the Public Service Company of New Mexico (PNM). The project will not only provide significant renewable energy to PNM customers but also contribute to the company’s goal of achieving emissions-free electricity generation by 2040.

It is estimated that San Juan 1 will generate enough clean energy to power approximately 52,400 homes annually, based on metrics provided by the Environmental Protection Agency. Operations are expected to commence in mid-2024. Initially developed by Photosol USA, the project was acquired by DESRI in 2022.

Financing for the construction of the San Juan 1 Project was secured through a consortium of lenders, including Société Générale (SG) as the lead arranger, along with Zions Capital Markets, Huntington National Bank, Commerzbank AG, and SuMi Trust.

SOLV Energy has been appointed as the engineering, procurement, and construction contractor for the solar and battery storage components of the project. EPC Services Company will handle the construction of the generation tie-line and project substation. Once operational, SOLV Energy will provide ongoing operations and maintenance services to the facility.

George Hershman, CEO of SOLV Energy, highlighted the positive impact of investing in solar and storage resources, citing lower energy costs, increased job opportunities, and enhanced tax revenue for communities across New Mexico. SOLV Energy is proud to partner with DESRI to bring cleaner and more reliable energy to San Juan County.

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