Electricity Resource Transition and Grid Modernization Program

The goal of ECAM’s Electricity Resource Transition and Grid Modernization Program is to promote functional and operational modifications to New Mexico’s electric grid to meet the state’s ambitious energy transition and emissions reductions goals.

The program supports actions that facilitate the grid’s adaptation to changing loads while enhancing reliability, resilience, and efficiency, and encouraging fair and equitable cost distribution. We accomplish these goals by:

1. regularly providing technical reports and compiling data on energy transition metrics and grid modernization topics and progress;
2. making informed legislative and policy recommendations; and
3. managing a grant program to support technology-focused pilot projects and other relevant research. (See the “Electric Grid Modernization Grant Program” section below for more details).

Strategic Planning Documents

2025 – Grid Modernization Assessment Report 
2024 – Advanced Metering Infrastructure Impact Assessment Discussion Draft
2021 – Grid Modernization Roadmap Report
2021 – Baseline Report of New Mexico’s Electricity System

New Mexico Energy Transition Reports

Reports are compiled periodically from data provided by the U.S. Energy Information Agency (EIA).

Q2 2025 Report

Q3 2024 Report

Electric Grid Modernization Grant Program

The Grid Modernization Program, established by the Grid Modernization Roadmap Act of 2020 (NMSA § 71-11-1) and pursuant to 17.9.588 NMAC, is intended to improve the electric distribution and transmission infrastructure to make it more flexible and responsive to modern energy resources and demands.  By providing grants to energy customers–e.g., local governments, education institutions and tribal governments– the program supports projects that enhance electricity reliability and affordability, among other objectives, while facilitating the integration of renewable electricity generation 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.” Some potential projects are described on slide 10 of the presentation below.

Grid Modernization 101.pdf

Grid Modernization Grants

ECAM is pleased to announce an additional round of Grid Modernization grant funding. Applications must be submitted via the email provided in the June Notice of Funding Opportunity (NOFO) by 3PM MDT on August 15, 2026.

The Energy Conservation and Management Division (ECAM) invites eligible entities to submit project proposals for Grid Modernization Program funding by August 15, 2026.

Funded projects 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. ECAM intends to reserve ninety percent of the available funds for Type 3 projects and five percent each to Type 1 and Type 2 projects.

A Link to the Notice of Funding (NOFO) can be found on ECAM’s Request for Proposals page.

Technical Assistance for Eligible Entities

Eligible entities and their prospective partners are encouraged to review the worksheet and sample project case studies below. These materials are designed to inform eligible entities about the grid modernization program and to provide guidance on how to match local objectives with effective grid upgrades, using real-world examples.  ECAM is also happy to facilitate workshops for eligible entities upon request.

Grid Mod Program Summary and Worksheet.pdf
BRAIN Case Study.pdf
Microgrid Case Study.pdf
Virtual Power Plant Case Study.pdf

Grid Resilience Funding – POWER Program

In addition to the Grid Modernization Grant Program, ECAM also administers the Preventing Outages While Enhancing Grid Resilience (POWER) program. POWER is funded through the federal Infrastructure Investment and Jobs Act of 2021. POWER can fund specific grid resilience measures including reconductoring, pole replacement, vegetation management and other measures that mitigate the impacts of climate change, extreme weather, wildfire and other natural hazards.  The latest round of funding closed on January 23, 2026.

Compare Grid Modernization and POWER grant programs

Questions and comments can be directed to: emnrd.gridmodernization@emnrd.nm.gov