Oriana Power unit: pact for setting up 50MW/100MWh BESS systems

Oriana Power unit: pact for setting up 50MW/100MWh BESS systems

Oriana Power, a subsidiary of the Public Service Company of New Mexico (PNM), has secured approval for a significant expansion of its battery energy storage system (BESS) infrastructure. The company has entered into agreements to set up three new BESS systems, each with a capacity of 50MW/100MWh, to support the growing energy demands of the Los Lunas Data Center campus operated by Meta [1].

The agreements, submitted to the New Mexico Public Regulation Commission (NMPRC), involve three hybrid BESS projects located in Valencia County, San Juan County, and De Baca County. These projects, named Star Light Energy Center, Four Mile Mesa Solar, and Windy Lane Energy Center, are set to commence operations by December 2026 and December 2027 [1].

The BESS systems will be paired with solar arrays, with the Star Light Energy Center featuring a 100MW solar array, the Four Mile Mesa Solar a 100MW array, and the Windy Lane Energy Center a 90MW array. The solar and storage projects will be procured from third-party developers, including NextEra Energy Resources (NEER) and Exus Renewables, to support the expansion of Meta’s data center campus [1].

PNM has negotiated power purchase agreements (PPAs) for the solar energy and energy storage agreements (ESAs) for the BESS systems. The agreements are 20 years in length, with DESRI receiving around 10% more for storage compared to NEER [1]. The solar pricing for the projects ranges from $35.87/MWh to $39.79/MWh, reflecting the different project packages and their respective negotiations [1].

The approval of these agreements by the NMPRC is a significant step forward for PNM and Meta, as it will enable the continued expansion of the Los Lunas Data Center campus. The utility company is expected to recover the costs associated with these renewable energy contracts from Meta through a separate specialist contract, ensuring that the costs do not impact other retail customers [1].

This development underscores the strategic importance of BESS systems in meeting the energy demands of large-scale data centers. The expansion of Meta’s Los Lunas campus, supported by these BESS systems, is a testament to the growing reliance on renewable energy sources and energy storage solutions in the tech industry [1].

References:
[1] https://www.energy-storage.news/new-mexico-utility-seeks-approval-of-hybrid-bess-offtake-contracts-to-power-meta-data-centres/