US energy roadmap at stake in upcoming presidential election

NEW MEXICO: The United States’ energy future could be at stake in November's presidential election.

Incumbent President Joe Biden has pledged to wean the country off fossil fuels, while Republican hopeful Donald Trump has indicated he will do the opposite.

New Mexico is uniquely placed as a state with huge potential for both renewable and non-renewable energy sources, but there are concerns that a change in administration could impact its energy path ahead.

NEW MEXICO ENERGY SOURCES

New Mexico is the second largest oil-producing state in the country after Texas.

It accounted for more than 13 per cent of total US crude oil production in 2022, with an all-time state high of about 574 million barrels, according to the US Energy Information Administration.

Advanced drilling and oil recovery technologies have helped the state’s crude oil production to increase significantly since 2010.

However, its lawmakers have also been putting their energy into harnessing cleaner sources of power. 

The state has pledged to cut greenhouse gas emissions by at least 45 per cent from 2005 levels, come end of the decade.

“We passed the Energy Transition Act a few years ago which sets in statute targets for New Mexico,” said the state’s energy office director Rebecca Puck Stair.

“Essentially, it (paves) the way to 80 per cent, and in some cases 100 per cent, renewables by around 2045 and we are actually ahead of schedule.”

New Mexico is the 11th largest generator of renewable power in the nation.

CLEAN ENERGY TAX CREDITS

Help has also come from the federal government. Under the Biden administration’s Inflation Reduction Act, solar projects are eligible for a 30 per cent tax credit.

Electrical contractor Pluma Construction is one company which has benefited from the Act, which was signed into law in 2022.

Its owner Chris Pacheco said demand for solar power has since become a shining part of his business, but the election year brings a degree of uncertainty.

“If there’s an administration switch, how’s that going to affect us? I don’t think it’s going to decrease the demand for renewable energy. But the policy initiatives may look different with a different administration,” he said.

Trump, the presumptive Republican presidential nominee, has indicated he will attempt to roll back Biden’s landmark climate law if he returns to office.

He is expected to increase investment in fossil fuels and expand oil and gas drilling under his “drill, baby, drill” pledge.

A SUNNY ENERGY FUTURE

Still, New Mexico is continuing to invest in its green energy future.

Singapore-based solar company Maxeon is building a nearly 2 million sq ft plant in the state’s largest city Albuquerque, where it aims to produce up to 8 million solar cells per year.

Analysts said the solar industry’s future is looking bright, as clean energy projects continue to stream into the state.

“We’re unlikely to see profound changes in the solar buildout no matter who wins (the election),” said vice president of non-profit advocacy group Evergreen Action Craig Segall. He added that renewable energy is cheaper, more readily available and more reliable compared to fossil fuels.

“So, once we have gotten over this initial hump, we have begun building out the infrastructure we need, it will be… really rare to just decide to shut off a profitable investment,” he said.

In the latest legislative session, state lawmakers signed off on a tax package that includes incentives for clean energy manufacturers. Under the initiative, authorities could offset a fifth of the cost of equipment needed for the production of items such as solar panels or batteries.

Currently, around 6 per cent of the state’s power comes from solar panels.

With a statewide goal of completely carbon-free electricity by 2045, experts believe renewable energy will continue to be a safe bet in one of the sunniest states in the country, regardless of who returns to the White House in January.