Annual Report 3 - New Mexico - Energy, Minerals and Natural ...

in 2008 (latest available data), total geothermal energy consumed in New Mexico equaled 348 billion BTU. The
majority of this consumption is from direct use within the industrial sector.
Another project is under development in the southwestern portion of the state where drilling has identified an
electric power production geothermal resource. The plant will produce 10 MW to start – enough renewable electric
power for at least 8,000 average households – and could be expanded eventually to 20 MW or more.
In 2008, the United States Geological Survey published a report for Enhanced Geothermal Systems technology for
western states’ electricity production. For New Mexico, the potential for resources being developed in the near term
with existing technology is about 75 percent of the potential in Hawaii, Idaho, Alaska, and Oregon. This makes
New Mexico a very attractive state for geothermal power development. For New Mexico, a realistic power generation
potential that is available for short term development with existing technology is estimated at 2,000 MW.
In 2009, Governor Richarson signed into law corporate and personal income tax credits for ground coupled heat
pump systems in New Mexico. The statute required that EMNRD adopt two rules, completed in September 2010,
to establish procedures to provide certification of these systems. The Geothermal Ground Coupled Heat Pump Tax
Credit was made retroactive for systems installed as early as January 1, 2010, and will be available through 2020. The
tax credit may be issued for up to 30 percent of system costs, but not to exceed $9,000. ECMD is now administering
the rules to certify the systems for tax credit eligibility.
ECMD has been working to update and further expand the geothermal energy resource assessment information
available to develop geothermal projects. In collaboration with DOE, annual meetings have been held in New Mexico
to collect stakeholder input for moving geothermal electricity and direct use projects forward. From these meetings,
industry and other stakeholders have identified the need for an updated statewide geothermal resource assessment to
promote geothermal industry projects.
In 2009, Governor Richardson’s Green Jobs Cabinet issued a report with recommendations for further developing
the geothermal industry in New Mexico. Based on these recommendations, Governor Richardson signed Executive
Order 2010-001 in 2010, with directives for EMNRD and New Mexico Institute of Mining and Technology
(NM Tech). Later in 2010, EMNRD and NM Tech entered into a contractual agreement for the development of a
statewide geothermal energy resource assessment. The resource assessment is scheduled for completion by the end of
2011.
Renewable Energy Development
Green Jobs and Economic Development Activities: On an ongoing basis, ECMD works closely with the Economic
Development Department, the New Mexico Economic Partnership, and local economic development agencies to
attract and assist clean energy-related companies interested in locating in New Mexico. ECMD also serves on and
provides staff support to the Governor’s “Green Jobs Cabinet” and the State Workforce Development Board’s “Green
ANNUAL REPORT 2010
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