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New Mexico energy funding targets grid modernization projects

July 31, 2026

New Mexico’s Energy, Minerals and Natural Resources Department is awarding $83 million to support electric grid modernization projects and residential energy-efficiency improvements across the state.  

The funding includes $67 million for Grid Modernization projects designed to strengthen the state’s electric infrastructure and accommodate increasing energy demand, along with $16 million for the Community Energy Efficiency Development (CEED) program, which helps underserved communities reduce energy costs through home energy audits and efficiency upgrades. 

The awards are funded through the Community Benefit Fund, established during the 2025 legislative session. ECAM is administering $110 million from the fund, which will invest more than $200 million in clean energy, climate resilience and workforce development projects through multiple state agencies. 

Under the Grid Modernization program, New Mexico State University received $31.1 million to expand an existing grid technology test bed, while the University of New Mexico was awarded $9.6 million for geothermal heat pumps and battery energy storage systems to support campus heating and cooling. Luna County also received $9.2 million for substation upgrades that will connect community solar projects to the grid. 

Through the CEED program, the New Mexico Mortgage Finance Authority received $3.67 million, Taos County $2.5 million and the City of Albuquerque about $2.1 million to support residential energy-efficiency improvements for low-income households. 


Photo by Frank Becker from Pixabay

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