New Mexico Introduces Bill to Strengthen Energy Grid with Lower-Cost Solutions

SANTA FE, NM –  New legislation, HB 311, or the Grid Reliability through Integrated DERs (GRID) Act, introduced by Representative Hochman-Vigil, would create virtual power plant (VPP) programs that help customers deploy their own energy technologies to support the grid, especially during times of peak demand, which will reduce costs for all New Mexicans.

VPPs are coordinated networks of consumer devices that can reduce or shift electricity use or supply additional power when the grid is strained. When used together, these resources are a reliable energy source that can deliver the same amount of power as a traditional energy plant.

“Hundreds of thousands of New Mexicans are already investing in technologies like home batteries, smart thermostats, rooftop solar, and electric vehicles,” said Rep. Hochman-Vigil. “Working all together, these technologies can help keep the lights on during peak demand, reduce costs for everyone, and allow New Mexico consumers to participate in our energy system.”

HB 311 will unlock the potential of VPPs by requiring electric utilities to develop VPP programs that include a transparent, open-access tariff, compensation guardrails for participants, and safeguards to protect consumer choice.

“Virtual power plants can drive down electricity costs for all New Mexicans by leveraging technologies already found in homes and businesses, like batteries, smart thermostats, and EV chargers,” said Michael Barrio, New Mexico lead at Advanced Energy United. “The New Mexico GRID Act creates programs that help customers use those technologies to support the grid when demand is high, saving money and making our energy system more reliable.”