The New Mexico Energy, Minerals and Natural Resources Department is now accepting grant applications from public entities that can demonstrate how new technologies can be harnessed to develop a reliable modern electric grid.
The grant funding comes from the Community Benefits Fund the State Legislature created during its 2025 legislative session. The legislature allocated $70 million from the Community Benefit Fund to the Grid Modernization Program administered by Energy, Minerals and Natural Resources Department’s (EMNRD) Energy Conservation and Management Division (ECAM).
“This Grid Modernization Grant Fund infusion is a game-changer for New Mexico’s ability to find innovative ways of strengthening our electric grid and building long-term resilience for our communities,” said ECAM Director Rebecca “Puck” Stair. “At the exact time the federal government is cancelling grants for projects designed to improve energy infrastructure, New Mexico is leaning in with record state funding for grid mod.”
Grid modernization projects are expected to upgrade electric distribution or transmission infrastructure to accommodate integration of renewable electricity sources or otherwise make the grid more efficient, reliable and secure and better able to respond to expected growth in energy demand.
ECAM is seeking to award grant funds to three types of projects:
- Projects that involve construction, installation, operation and verification of functioning modern grid technology at a project site.
- Projects consisting of pre-construction or design activities that would eventually result in the building and installation of fully functional modern grid technology.
- Original research projects that advance the state’s understanding and appreciation of grid function, reliability, resilience, security and operation relating 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.
By law, eligible applicants include municipalities and county governments; state agencies; public schools; state universities and other post-secondary education institutions; and Native American nations, tribes and pueblos. All projects must take place within New Mexico.
Questions concerning this funding opportunity should be submitted in writing with “GRID MOD NOFO” in the subject header to Chadette Pfaff.
Applications will be accepted and reviewed on a monthly rolling basis beginning Nov. 1, 2025, until all available funds are awarded.
News item from the New Mexico Energy, Minerals and Natural Resources Department
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