New Mexico Green Grid Initiative

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21 Νοε 2013 (πριν από 4 χρόνια και 5 μήνες)

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New Mexico Green Grid Initiative

Progress Report to Governor Richardson

and the Green Jobs Cabinet

Respectfully submitted by

Cabinet Secretary Fred Mondragón

New Mexico Economic Development Department

Fulfilling Action Item III 1. a.

from Gov
ernor Richardson’s

Executive Order 2010

June 30, 2010

This report provides a summary, in accordance with Governor Richardson’s Executive
Order 2010

of progress

towards the development of a green grid in New Mexico
The action item reads
as follows:

Executive Order 2010
001, Action Item III 1. a.

EDD shall work with Los
Alamos and Sandia National Laboratories, New Mexico’s research universities,
congressional delegation, and other relevant stakeholders in order to support
the development
of a green grid in New Mexico, related technologies and
associated economic development opportunities. EDD shall report on the
progress of the green grid and accompanying technologies to the GJC and the
Governor no later than June 30, 2010.

I am please
d to report that progress towards this goal with the required partners
through the New Mexico Green Grid Initiative is well underway. EDD has been working
closely with Dr. Tom Bowles, and several milestones have been reached, including the
formal adoption
of a charter, the announcement of the partnership with the Japanese
government and their industry partners, and the signing of an MOU between EDD and
the Galvin Electricity Initiative. Work will continue during the remainder of 2010,
strengthening the Init
iative and seeking additional funding.


The New Mexico Green Grid Initiative (NMGGI) was initiated in August 2009 to address
the need for the nation to quickly become energy independent by employing the most
efficient renewable energy sources p
ossible. From the New Mexico perspective, it is
an economic and environmental imperative that New Mexico transition to clean and
renewable energy quickly to offset lost revenues from declining oil production and to

drive the development of clean tech compa
nies in the state.

The Green Grid Initiative was established with the goal of vetting a next
smart grid for renewables, from utility
scale renewable power to rooftop photovoltaic
arrays, that is fully integrated with a com
plete system of energy

storage and
smart controls. The result will be a system that is repeatable and scalable...

and re
saleable, creating jobs.

The plan calls for the state to

work with industry and venture
capitalists to implement a Green Grid system across New Mex
ico within five years.

There are two other direct benefits to building a New Mexico Green Grid:


the transition from fossil fuels (coal and natural gas) to solar, wind, and
geothermal sources for electricity production will result in significant

in the emission of greenhouse gases and thus address concerns about
global climate change.


the development of New Mexico as a leader in clean energy and smart grid
technologies will provide the means to attract clean energy and smart grid
manufacturing co
mpanies to locate in New Mexico. This will result in job
creation that provides both well
paying salaries as well as growing the clean
tech economy of the State.

The Green Grid Initiative proposed three phases (see attached Legislative Summary):

Phase I

A technology development phase, where commercialized R&D and prototyping
leads to the development of a fully integrated system that includes all elements from
a smart microgrid to utility
scale renewable energy production and transmission able
to be tested

in a demonstration project.

Phase II

Construction of a demonstration project that will power a
residential/commercial area from distributed and utility
scale renewable energy
sources that will fully vet the approach and demonstrate an acceptable level o
f risk
for implementation of a full Green Grid.

Phase III

Statewide implementation of the Green Grid.

The NMGGI takes a

integrated approach to creating a Green Grid

it deals with the

range of technical, regulatory, environmental, workforce, busin
ess, and economic
issues. New Mexico is the perfect site for the first statewide Green Grid
Demonstration Project due to the presence of R&D capabilities at our universities and
national laboratories, forwar
looking state government and c
ongressional dele
a population that is small enough to make implementation tractable, the Renewable
Energy Transmission A
uthority, and a wealth of solar,
and geothermal

The NMGGI formed a strong collaboration including New Mexico utilities,
ommunities, our
research universities and national laboratories, and businesses. The
Japanese government’s N
ew Energy and Industrial Technology Development

has become a partner, bringing financial support and strong
industrial partners
to the collaboration.

The NMGGI submitted a proposal for ARRA Smart Grid Investment Grant program (see
attached ARRA Proposal Executive Summary). The proposed effort centered on smart
microgrid demonstration experiments at five sites around NM that emphas
regional characteristics: Taos, Los Alamos, Albuquerque, Portales, and Las Cruces.
These projects addressed a wide range of supply and demand side issues. A total of
$59M of funding was requested with $60M of matching funds and $68M of additional
stment in renewable energy development. A formal structure for the NMGGI was
put in place (led by the New Mexico Computing Applications Center) for the
management structure for the proposed ARRA SGIG effort. While the proposal was
ranked highly on its appr
oach to develop a smart, scalable, sustainable, and secure
solution for the smart grid, it was not funded. This was due to two considerations: 1)
while the NM proposal was a development project that met the stated goals of the
Request for Proposals, the fi
nal rankings by the DOE were strongly based simply on
how much equipment would be procured and how many temporary jobs created, and
2) we did not have a single large existing organization leading the effort but rather
relied on establishing a new entity as

program lead.

Current efforts

The NMGGI continues to move forward but the lack of Federal ARRA funding required
reductions in the scope of activities for Portales and Las Cruces. Fortunately, it did
not substantially impact the efforts planned in Taos,

Los Alamos, and Albuquerque. In
total, there is $131M of investment in hand for the projects at the five sites. In
particular, NEDO retained its full commitment of $30M for the Los Alamos and
Albuquerque projects. Intel is investing several
millions of do

and has

their first
ever Energy
Research Center in Rio Rancho. The decision to locate
the Intel Center

in Ri
o Rancho was made specifically because of the NM Green Grid
program and the presence of the New Mexico supercomputer at the In
tel location in
Rio Rancho. And the Galvin Electricity Initiative (GEI) has opened their first branch
office in the world in Albuquerque to partner on the Green Grid.

MOUs are in place
between the s
tate and NEDO as well as between the State and the GEI.

e MOU with
GEI is attached.

The NMGGI has now formalized a charter (attached) for its continued efforts


has been a
ccepted by all of the GGI partners (see list included in the attached
charter document)
. Letters of intent from collaborating e
ntities are being developed
to support the formation of the entity that will carry out the NMGGI program over the
coming years.

The NMGGI partners have been meeting on nearly a monthly basis to
pursue the Green Grid goals and these meetings will continue.

The NMGGI is developing plans for a two
pronged approach for a NM Green Grid. The
first part consists of the smart microgrid projects now underway in Albuquerque, Los
Alamos, and Taos. The second part is to develop a proposal to the DOE for a "virtual
Green Grid". This will take data from our utilities and combine it with data from
the smart microgrid projects and smart grid efforts underway at our research
institutions. A computer model of a NM Green Grid will be developed that
incorporates real data f
rom around the state and combines it with the performance
characteristics of actual smart grid control systems. This will allow us to understand
the performance capabilities of a NM Green Grid. The challenge is to understand in
detail how variable renewabl
e energy sources around New Mexico can be combined to
allow the "wheeling" of renewable energy from one location to another (including
export to other states) that provides clean electricity that is reliable and stable. This
is where the smart grid compone
nt comes in. Electricity generation from renewables
does not in general provide a consistent and stable source of electricity: when the
wind velocity changes at one site the power generated goes up and down. Similarly,
when clouds obscure the sunlight onto

a solar PV system, the amount of electricity
generated drops. By combining many systems around the state (where the wind and
solar conditions are different) and including smart grid control systems to smooth and
balance the power, we can produce a stable,

reliable smart electrical grid. The
computer model (based on actual
time data from around the s
tate) can be used
to optimize all the components of a Green Grid before it is installed. This will provide
the confidence needed to convince the utilities,

communities, and venture capitalists
to invest in building out a New Mexico Green Grid. We plan to submit this proposal to
the DOE this fall.

From the perspective of the Economic Development Department, these efforts have a
significant potential to creat
e jobs in three ways:

by developing green grid solutions that allow our transmission infrastructure to
support higher penetrations of renewable energy that will stimulate the
development of renewable energy projects;

these additional renewable energy proje
cts will help to attract additional
renewable energy manufacturers to the state;

as green grid solutions and technologies are developed, they can be
commercialized into new high
tech businesses that will result in new hiring
and new exports out of the stat

The Economic Development Department looks forward to continuing to support the
efforts of the NMGGI and hopes to have additional progress to report later this year.