D. E. Shaw starts construction on 200-MW solar + storage project

DE Shaw Renewable Investments (DESRI) announced that the San Juan 1 Project has reached financial close with its project lenders and has begun construction. San Juan 1 has a capacity of 200 MW_AC: solar and 100-MW_AC: Battery storage adjacent to the former San Juan Generating Station in San Juan County, New Mexico. The project is a critical capacity replacement for the San Juan Generating Station, which was commissioned in 2022, and will be connected to the grid using existing infrastructure from the retired plant. San Juan 1 is the first phase of a larger project that is expected to deliver 400 MW_AC: grid clean energy when fully designed and built.

“DESRI is excited to announce the start of construction on San Juan 1. As a replacement for retired coal-fired generator capacity, the project is an important part of New Mexico’s transition to modern, cost-effective battery-backed renewable energy. storage,” said DESRI Chief Commercial Officer Thomas de Swardt.

San Juan 1 is DESRI’s third project in New Mexico and the first in San Juan County. The project has a 20-year power purchase agreement with Public Service Company of New Mexico (PNM) and will provide its customers with significant renewable energy while facilitating the company’s efforts to make all electricity generation zero-emissions by 2040. It is expected to generate enough clean energy to power approximately 52,400 homes each year, according to measurements provided by the Environmental Protection Agency. The program is scheduled to begin in mid-2024. Photosol USA originally developed the project before selling it to DESRI in 2022.

Project construction financing was provided by a consortium of lenders, including Société Générale (SG) as lead arranger, plus Zions Capital Markets, Huntington National Bank, Commerzbank AG and SuMi Trust.

SOLV Energy will serve as the engineering, procurement and construction contractor for the solar and battery storage components, while EPC Services Company will construct the generation link line and the project’s substation. In addition, SOLV Energy will provide ongoing operation and maintenance for the facility once operational.

“As New Mexico energy companies continue to invest in solar and storage resources, the state’s communities will benefit from lower energy costs, more job opportunities and increased tax revenue,” said SOLV Energy CEO George Hershman. “We are proud to partner with DESRI to bring better energy to San Juan County.”

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