The project involves building a new water and treatment reclamation facility and two lift stations that will comply with future environmental guidelines and meet growing demand.
Hydropower accounts for 27% of the country's renewable electricity generation, with the bonus that it does not depend on real-time weather conditions to produce electricity like wind and solar.
The funding is available for developers to further commercial facility availability, workforce housing and affordable housing infrastructure in New Mexico.
The two areas being auctioned have the potential to produce over 3.1 gigawatts of clean, renewable energy, which is enough to power around 1 million homes.