DESRI Breaks Ground on Santa Teresa Solar + Storage, Tapping U.S.-Made BESS

Doña Ana County, N.M. — Construction is officially underway on the Santa Teresa Solar and Storage project, an ambitious renewable energy build that will add 150 MW of solar generation and 600 MWh of advanced battery storage to New Mexico’s grid. The project, developed by D.E. Shaw Renewable Investments (DESRI), will supply clean, reliable power under a 20-year power purchase agreement (PPA) with El Paso Electric (EPE).

The Santa Teresa project expands DESRI’s growing collaboration with EPE — following its Carne Solar + Storage project, which broke ground in 2024 with 130 MW of solar and 260 MWh of storage capacity. Both projects highlight the utility’s push to meet rising energy demand while decarbonizing its power mix.

“The Santa Teresa Project is a cornerstone of DESRI’s growing partnership with El Paso Electric and a prominent example of how cost-effective solar and storage assets can power New Mexico’s future,” said Hy Martin, Chief Development Officer of DESRI. “The Project not only contributes to regional grid stability via large-scale energy storage, but it also underscores our shared commitment to clean energy and economic development in Doña Ana County and across the state.”

The project comes at a critical moment for New Mexico’s clean energy push, as the state aims to reach 50% renewable power by 2030 under its Energy Transition Act. Large-scale solar paired with battery storage helps address renewable intermittency by storing excess generation during the day and dispatching it when demand peaks.

Financing & Supply Chain Commitment

The Santa Teresa Solar and Storage project is backed by major financial institutions with DNB Bank ASA, New York Branch, and National Bank of Canada serving as Joint Coordinating Lead Arrangers. Sumitomo Mitsui Trust Bank, New York Branch, and Korea Development Bank also joined the lender group, with Deutsche Bank Trust Company Americas acting as Administrative Agent — signaling continued investor confidence in large renewable energy and storage projects.

A major highlight is the use of U.S.-made battery energy storage systems (BESS). LG Energy Solution Vertech will supply the project with domestically produced batteries and the AEROS energy management software suite — an important boost for local manufacturing and compliance with domestic content incentives in the Inflation Reduction Act.

“During this hot summer, energy demand continues to rise. We’re proud to be a part of a project that helps support the community by adding clean energy technology to the electric grid, and to do so using U.S. made battery systems,” said Jaehong Park, CEO of LG Energy Solution Vertech. “This is a pivotal moment for energy storage, and we’re working with DESRI and El Paso Electric to build on the momentum we’ve seen in the American energy storage market.”

Job Creation & Local Economic Impact

Construction and long-term maintenance will be led by SOLV Energy, which is serving as EPC contractor and will handle operations and maintenance once the project goes live. The project is expected to generate hundreds of construction jobs during peak buildout, providing direct and indirect economic benefits to Doña Ana County.

In addition to construction jobs, the site will bring long-term operations, maintenance, and technical roles to the region — further contributing to New Mexico’s expanding clean energy workforce and its position as a hub for solar and battery deployment in the Southwest.

Future Outlook

Large projects like Santa Teresa highlight the critical role energy storage will play in the next decade as utilities replace aging fossil fuel plants and balance grid reliability with clean generation. As more states adopt aggressive carbon-reduction targets, pairing solar with storage ensures that renewables can deliver power around the clock, reduce peak prices, and stabilize regional grids during extreme heat and weather events.

DESRI’s growing New Mexico portfolio reflects this trend — pairing robust private investment with reliable, clean capacity to help local utilities meet both near-term and long-term demand.

When operational, Santa Teresa is expected to power tens of thousands of homes and help El Paso Electric advance toward its net-zero goals while supporting grid resiliency in one of the nation’s fastest-growing regions for solar deployment.

For more information about the Santa Teresa Solar and Storage project, visit www.desri.com.

Originally reported by Kelly Pickerel in Solar Power World.