Electric Grid Modernization Grant Program

Pursuant to the Electric Grid Modernization Roadmap Act of 2020, EMNRD has developed the Grid Modernization Grant Program (17.9.588 NMAC). The program is intended to fund electric grid modernization research and development as New Mexico transitions to a 100 percent zero-carbon electricity resources.

Grid modernization projects are those that make improvements to electric distribution or transmission infrastructure to accommodate or facilitate the integration of renewable electric generation resources with the electric distribution grid or otherwise enhance electric distribution or transmission grid reliability, grid security, demand response capability, customer service or energy efficiency or conservation.

In 2025, the New Mexico Legislature passed the Community Benefits Fund Act (CBF) awarding Seventy-Million Dollars to the grid modernization grant fund for the purpose of administering and supporting projects through the Grid Modernization Grant Program. The CBF specified that projects receiving CBF funds must document that two meetings were held within the overburdened community affected by the proposed project or complete a negotiated community benefits agreement.

Eligible Applicants

Municipalities and county governments, state agencies, state universities, public schools, post-secondary education institutions, and Indian nations, tribes and pueblos are all eligible to apply. All projects must take place within New Mexico.

Project Types

Typical projects will fit within one of three types. Type 1 projects are original research projects that advance the state’s understanding and appreciation of grid function, reliability, resilience, security and operation as it relates to the integration of renewable and zero-carbon resources, including impacts on customer behavior, operations and maintenance costs or the value of specific grid technologies. Type 2 projects consist of pre-construction or design activities to support grid modernization construction/installation projects.  Type 3 projects involve construction, installation, operation and verification of a grid modernization technology at a project site.  Ninety percent of the available funds will be allocated to Type 3 projects and five percent each for Type 1 and Type 2 projects.

Application Review and Evaluation

Applications will be accepted on a monthly rolling basis beginning November 1, 2025 until all the available funds are allocated. Projects shall be completable within two years after the date of the fully executed contract, and all projects must be completed by June 30, 2028.

Applications will be evaluated on the degree to which the project’s alignment with the state’s goals for grid modernization, the broader economic impact of the project or insights, and the broader educational potential and value of the project.  Successful applicants must demonstrate compliance with the CBF at the time of application or if selected, will be in compliance with the CBF before going under contract with EMNRD.

If requested, EMNRD will meet with prospective Applicants prior to submission and may also provide feedback to interested Applicants on project ideas.

How to Apply

Solicitations can be found at:  https://www.emnrd.nm.gov/ecmd/about-us/requests-for-proposals-applications/

Questions and requests for presentations about the grant program may be directed to chadette.pfaff@emnrd.nm.gov.

Program Success

Learn more about funded projects here.