Editor August 17, 2021
Ground mounted solar panels

The City of Lovington recently approved a plan to lease two large tracts of land to a company for setting up a solar farm on the south side of town. This lease will bring in just over $1 million for the city in its first year. The solar farm is also planned to create 250 jobs during construction and 25 permanent jobs for the operation of the plant.

Once completed, this solar farm would be the largest in New Mexico, according to a joint press release from the Lovington Economic Development Corporation (EDC) and Louth Callan Renewables, the company leasing the land. The finished plant is expected to generate 300 megawatts (MW) of energy which is enough to power 38,000 homes for a year according to the press release.

New Mexico is an ideal location for investment in solar power because of the high level of sunshine and large wide open spaces. In addition, wind is also an important renewable resource for the area which is why wind and solar plants have slowly been spreading across the state. Lea County currently has a large dependency on the oil & gas industry, which has caused boom and bust cycles for the area for decades. Now with the future of oil & gas in a precarious spot given advancements in cleaner energy and with the looming threat of Climate Change, this investment in solar will likely help diversify the area’s economy.

Louth Callan Renewables is a company based in Suffield, CT which specializes in the construction and operation of solar panels. They have several projects listed on their website, including smaller projects under 1 MW.

Louth Callan solar projects

The solar farm in Lovington will be located on two parcels of land at the city’s industrial park on the Hobbs Highway (NM-18), totaling 1350 acres.

While the first year of the lease will bring in just over $1 million for the city, revenue in subsequent years will be lower. The premium payment in the first year will however be extremely useful to the City of Lovington, providing vital funding for priority projects. Lovington, like many communities in America, has suffered economically during the COVID-19 pandemic. The second year of the lease will bring in nearly $500,000 and will increase by 1% each year.

Louth Callan is expected to lease the area for at least 25 years, which would provide the city with nearly $15 million for the life of the project.

In addition to the jobs created for operation for the solar farm, the Lovington EDC and Louth Callan Renewables expect some indirect benefits to the local economy as well which could result in additional jobs

The City of Lovington issued a request for proposal (RFP) earlier this year for “innovative use” of the land at the industrial park. Lovington EDC CEO Evelyn C. Holguin was involved in crafting that RFP.

“We’re excited to work with a forward-looking group, city and state leaders to empower the future with clean, sustainable energy,” said Nick Sylvestre, CEO of Louth Callan Renewables, in the press release. He added that the company has begun working with local organizations to ensure necessary certification programs are available and find ways the company can help develop the needed skill sets in the area which will be needed to construct and operate the solar farm.

There will be a substantial period of planning before construction can begin. The project is expected to be “shovel ready” by the end of 2023.

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