The PPA clears the way for the construction of the plant which is to be located on State Trust land at Macho Springs in New Mexico’s Luna County. The plant will provide 50MW of solar energy to El Paso Electric Power for a period of 25 years.
“This 50 megawatt solar power project will provide about 300 jobs during the construction phase, which is a huge boost to New Mexico's ailing construction industry, and it will provide a constant stream of revenue for our public schools, universities and hospitals” said State Land Commissioner Ray Powell. “This project will provide clean, efficient solar power to El Paso Electric service territory customers, and the lease payments could generate as much as $40 million for state land trust beneficiaries over the 40-year term of the lease.”
The plant will achieve significant savings over gas-fired or coal-fired plants and will have zero carbon emissions. It will be able to generate enough clean energy to power more than 18,000 average New Mexico homes and will displace more than 40,000 metric tons of CO2, the equivalent of taking 7,500 cars off the road. The plant will also reduce water consumption by more than 340,000 tons per year.
First Solar has submitted its final development plan including a site plan and specific mitigation strategies. The company is also engaged in obtaining a number of construction permits with a view to commencing the construction phase in July. The project is expected to generate other benefits to the local and regional economy including millions of dollars in direct and indirect economic benefits and at least three operations and maintenance jobs when the solar plant is complete.
El Paso Electric Company will purchase the entire output power from the Macho Springs project through the PPA. The plant will operate on a commercial lease from the State Land Office. An interconnection agreement has already been agreed between First Solar and El Paso Electric. The plant itself will cover around 500 acres of land
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