Public Service Company of New Mexico (PNM), a subsidiary of PNM Resources, Inc., asked for bids for 4 megawatt (MW) of new solar photovoltaic (PV) systems on August 7, 2009. The request for proposals is for companies interested in designing, engineering, procuring, installing, testing and commissioning various sizes of solar PV systems as part of the program. The number of systems to be installed has not yet been determined, but PNM is proposing to have 4 MW of new capacity installed.

There currently is about 1.4 MW of solar PV capacity on PNM’s system, almost all owned by individual customers.

PNM is seeking permission from the N.M. Public Regulation Commission to launch a program in which PNM would own this solar capacity, but it would be sited on property owned by participating customers. PNM would pay participating customers lease payments in return for hosting a PNM-owned solar PV system.

“We understand the importance of local industry in making our state a renewable energy leader and fully expect that this plan will help grow the industry and create new, ‘green-collar’ jobs,” PNM President and Chief Executive Officer Pat Vincent-Collawn said.

“This program would provide a unique opportunity for customers who want to actively support the growth of the solar PV industry in our state,” Vincent-Collawn said.

Proposals are due September 1, 2009. PNM finalized the RFP after holding workshops with New Mexico solar vendors this week.

The proposed program, which is still being finalized, would complement PNM’s existing programs for customer-owned solar PV systems. PNM not only purchases excess renewable energy generated by customer-owned systems, but also pays customers for the environmental attributes associated with the renewable energy (known as a renewable energy credit). These RECs help PNM meet the state’s renewable portfolio standard.

PNM will file specific details of the program with the PRC this fall. PNM this fall also will announce details on plans to install more than 70 MW of new utility-scale solar and wind capacity to be in place in 2011.

Both of these projects are part of PNM’s plan to meet the state’s renewable portfolio standard, which is 6% of energy sales in 2010 and 10% in 2011. PNM is proposing a mix of programs that would allow it to meet the RPS and stay within the state’s limits on associated cost increases for customers, including a proposal to use biogas derived from the waste of livestock as fuel for an existing natural gas-fired power plant near Deming.