May 2 (Renewables Now) - PNM Resources (NYSE:PNM), through its wholly-owned utility subsidiary, has agreed to buy the Western Spirit renewable power transmission project in New Mexico that would help accommodate 800 MW of new wind energy.
PNM has signed an agreement to acquire this 345-kV power line, upon its completion in 2021, from developers Pattern Energy Group 2 LP, or Pattern Development, and the New Mexico Renewable Energy Transmission Authority. The net investment is estimated at USD 285 million (EUR 254.3m), according to the announcement.
"While sunshine and wind may be plentiful in New Mexico, the ability to deliver the clean energy they can produce is limited by the capacity of transmission lines. Expansion of the PNM transmission grid makes it possible for Pattern Development to invest in wind energy resources in New Mexico," said Pat Vincent-Collawn, PNM Resources' chairman, president and CEO.
The transaction is pending regulatory clearance. PNM noted that an affiliate of Pattern Development that is also a wholesale transmission customer of the utility, will fully fund the investment through an incremental rate.
Pattern Development bought the Western Spirit project a year ago along with the 1,000-MW Mesa Canyons wind farm scheme in Lincoln County.
(USD 1.0 = EUR 0.892)