Construction has officially commenced on the Santa Teresa Solar and Storage Facility, a significant renewable energy facility in Doña Ana County, New Mexico. Developed by DESRI (D. E. Shaw Renewable Investments) in partnership with El Paso Electric (EPE), the facility couples 150 megawatts (MWac) of solar generation with a 600 megawatt-hour (MWh) battery energy storage system, one of the largest clean energy developments in the region.
The plant broke ground following its financial notice to proceed (FNTP), which was a significant milestone allowing the construction work to begin. Once online, Santa Teresa is expected to generate enough electricity to power approximately 60,000 homes each year, making an important contribution to regional grid stability and reducing the consumption of fossil fuels.
“This project is a foundation of New Mexico’s energy future,” stated Hy Martin, Chief Development Officer of DESRI. “It strengthens our growing partnership with El Paso Electric and demonstrates how large-scale solar and storage solutions can deliver long-term value to communities.”
Power purchase agreement
Santa Teresa is backed by a 20-year power purchase agreement with El Paso Electric. It also represents DESRI’s second major project within EPE’s service territory, following the 130 MWac Carne Solar + 260 MWh storage facility that began construction in 2024.
For El Paso Electric, the project is vital to the utility’s infrastructure and sustainability pledge. “This is about more than putting clean energy on the grid,” said Dave Hawkins, EPE Vice President of System Planning and Operations Support. “It’s about backing reliability, increasing capacity, and investing in the region’s economic future.”
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The project’s battery systems will be supplied by LG Energy Solution Vertech, which is also providing its AEROS energy management software and long-term service and support. SOLV Energy is heading up engineering, procurement, and construction services and will move on to operate and maintain the facility once online.
While exact financial information has not been disclosed, the scale of Santa Teresa Solar and Storage facility—combined with the involvement of several major financial institutions like DNB Bank ASA, the National Bank of Canada, Sumitomo Mitsui Trust Bank, and Korea Development Bank—places the investment firmly in the hundreds of millions of dollars.
The Santa Teresa project is expected to be a critical piece in meeting growing needs for electricity, particularly during peak usage hours in the hot summer months. It also helps support the state’s general transition to cleaner, more sustainable energy infrastructure.
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Santa Teresa Solar and Storage Facility: Project Factsheet
Project Overview
Location: Doña Ana County, New Mexico
Status: Construction commenced (Financial Notice to Proceed achieved)
Project Type: Solar generation + battery energy storage
Key Specifications
Solar Capacity: 150 megawatts (MWac)
Battery Storage: 600 megawatt-hours (MWh)
Annual Power Generation: Sufficient to power ~60,000 homes
Contract Duration: 20-year power purchase agreement
Santa Teresa Solar and Storage Facility: Project Partners
Developer: DESRI (D. E. Shaw Renewable Investments)
Utility Partner: El Paso Electric (EPE)
Battery Supplier: LG Energy Solution Vertech
EPC Contractor: SOLV Energy
O&M Provider: SOLV Energy
Financial Backing
DNB Bank ASA
National Bank of Canada
Sumitomo Mitsui Trust Bank
Korea Development Bank
Investment Scale: Hundreds of millions of dollars
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