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Released September 02, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--In New Mexico, Sante Fe County commissioners last week approved a permit that would allow construction of a photovoltaic solar plant protested by many area residents. However, the project's opponents have said they won't stop fighting, potentially delaying the project and shortening its timeline to obtain lucrative federal government tax credits.
Plans for the Rancho Viejo solar development near the Santa Fe suburb of Eldorado have been floating around since at least early last year. Energy and utility company AES Corporation (Arlington, Virginia) plans to build the solar farm on a 680-acre parcel of land, with plans for the facility to provide 96 megawatts (MW) of emissions-free generation. In addition, the facility also would contain a battery energy storage system (BESS) capable of providing up to 48 MW of power in times when the sun isn't shining.
From the start, the project has been greeted with protests from nearby residents who are worried about the solar farm's impact on their property values as well as the fire hazard presented by the batteries used in the BESS component. One of the key groups to emerge in opposition to the project is the Clean Energy Coalition of Santa Fe County (CEC), which is now approximately 2,000-people strong body and has raised more than $50,000 for its war chest against the project.
The Santa Fe County Commission voted 4-1 to approve the land-use permit for Rancho Viejo, with Commissioner Lisa Cacari being the sole holdout. "My vote is not against solar energy," she was quoted as saying by the Santa Fe New Mexican, "It is against this particular proposal by AES because it does not meet--based on the evidence I've reviewed, written submissions and testimonies--the highest standards we owe all of our communities." Proponents of the project note that output from the project could cover almost the entire residential power demand of Santa Fe.
CEC Vice President Randy Coleman told news media after the vote that the group plans to file an appeal.
And that appeal could lead to further headaches and potentially affect the project's finances. The July passage of the One Big Beautiful Bill Act ends federal tax credits for wind and solar energy developments much sooner than originally planned. Although there have been further additions to the construction guidelines to qualify for tax credits since the bill's passage, essentially projects that start construction by July 4, 2026, have up to four years to complete the project and obtain credits. Projects starting after this date have a much shorter window to qualify for the tax credits and must be complete by December 31, 2027.
Joshua Mayer, who has acted as AES' representative in the community and has been a voice in the hearings process, has said plans for the project were to begin "construction diligence activities" in 2026 and have Rancho Viejo in operation by the end of 2028.
An appeals process potentially could delay the project's start, but those wanting a quick start to the project argue that if that if it is delayed and built without qualifying for the credits, the increased cost could be passed on to ratepayers.
New Mexico has set out stringent renewable energy targets, with the state's 2019 Energy Transition Act mandating that utilities must obtain 50% of their power from renewable sources by 2030 and 80% by 2040. Public Service Company of New Mexico (PNM) (Albuquerque, New Mexico) is the intended customer Rancho Viejo's output, but as of mid-August, no agreement had been made between PNM and AES. In a mid-August County Commission meeting, AES' Mayer told commissioners, "Ultimately, as I mentioned before, we do need a power contract," and that without such a contract, the project may not be built.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the project report.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Plans for the Rancho Viejo solar development near the Santa Fe suburb of Eldorado have been floating around since at least early last year. Energy and utility company AES Corporation (Arlington, Virginia) plans to build the solar farm on a 680-acre parcel of land, with plans for the facility to provide 96 megawatts (MW) of emissions-free generation. In addition, the facility also would contain a battery energy storage system (BESS) capable of providing up to 48 MW of power in times when the sun isn't shining.
From the start, the project has been greeted with protests from nearby residents who are worried about the solar farm's impact on their property values as well as the fire hazard presented by the batteries used in the BESS component. One of the key groups to emerge in opposition to the project is the Clean Energy Coalition of Santa Fe County (CEC), which is now approximately 2,000-people strong body and has raised more than $50,000 for its war chest against the project.
The Santa Fe County Commission voted 4-1 to approve the land-use permit for Rancho Viejo, with Commissioner Lisa Cacari being the sole holdout. "My vote is not against solar energy," she was quoted as saying by the Santa Fe New Mexican, "It is against this particular proposal by AES because it does not meet--based on the evidence I've reviewed, written submissions and testimonies--the highest standards we owe all of our communities." Proponents of the project note that output from the project could cover almost the entire residential power demand of Santa Fe.
CEC Vice President Randy Coleman told news media after the vote that the group plans to file an appeal.
And that appeal could lead to further headaches and potentially affect the project's finances. The July passage of the One Big Beautiful Bill Act ends federal tax credits for wind and solar energy developments much sooner than originally planned. Although there have been further additions to the construction guidelines to qualify for tax credits since the bill's passage, essentially projects that start construction by July 4, 2026, have up to four years to complete the project and obtain credits. Projects starting after this date have a much shorter window to qualify for the tax credits and must be complete by December 31, 2027.
Joshua Mayer, who has acted as AES' representative in the community and has been a voice in the hearings process, has said plans for the project were to begin "construction diligence activities" in 2026 and have Rancho Viejo in operation by the end of 2028.
An appeals process potentially could delay the project's start, but those wanting a quick start to the project argue that if that if it is delayed and built without qualifying for the credits, the increased cost could be passed on to ratepayers.
New Mexico has set out stringent renewable energy targets, with the state's 2019 Energy Transition Act mandating that utilities must obtain 50% of their power from renewable sources by 2030 and 80% by 2040. Public Service Company of New Mexico (PNM) (Albuquerque, New Mexico) is the intended customer Rancho Viejo's output, but as of mid-August, no agreement had been made between PNM and AES. In a mid-August County Commission meeting, AES' Mayer told commissioners, "Ultimately, as I mentioned before, we do need a power contract," and that without such a contract, the project may not be built.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the project report.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
