A company with ambitions to create a New Mexico home in order to expand its renewable energy operations throughout the western United States announced this week it would purchase more than $30 million in technology from Albuquerque's Array Technologies.
Avangrid Inc. (NYSE: AGR), which announced in October of 2020 an effort to merge with PNM Resources, will use Array Technologies' solar trackers at a renewable energy development in Texas. The 321-megawatt project in Falls County, Texas, is one of Avangrid's largest solar facilities under development in the U.S., according to a news release.
Solar trackers like those that Array Technologies (NASDAQ: ARRY) produces help solar panels adjust to the exact location of the sun to optimize the absorption of solar energy.
Array Technologies is a long-standing supplier to both Avangrid and its parent company, Iberdrola Group, according to the new release. However, this agreement represents a step forward and was vital to the final decision to build the True North solar farm, according to Avangrid officials.
The project is expected to be completed by the end of 2024 and will deliver 321 megawatts to Texas consumers, according to the release. It builds on the company's existing renewable energy facilities in Texas, where it already generates more than 1,250 megawatts through six wind farms. The company has additional projects in the pipeline — including the True North solar farm — that will generate another 1,300 megawatts.
In all, Avangrid has onshore solar and wind generation facilities in 24 states across the U.S. That includes the La Joya and El Cabo wind farms in New Mexico.
Array Technologies, which is headquartered at 3901 Midway Place NE in Albuquerque, is scheduled to release its full fourth quarter and full year 2022 financial results after the close of financial markets on March 15.
In announcing the company's preliminary financial results for 2022 on Thursday, Array Technologies CEO Kevin Hostettler said he remains optimistic about the state of the solar industry in 2023 and forecasts year-over-year revenue growth north of 15%.
According to its last quarterly report filed with the U.S. Securities and Exchange Commission, Array Technologies employed 1,118 people full-time as of Sept. 30, 2022. That's up from 471 as of Dec 31, 2021, and due largely to the acquisition of Soluciones Técnicas Integrales Norland, S.L., an overseas solar tracker company.
Avangrid's proposed merger with PNM remains before the New Mexico Supreme Court ever since the two companies appealed a decision by state regulators more than a year ago.
In December of 2021, the five-member New Mexico Public Regulation Commission unanimously rejected the proposed merger after hours of deliberation by the merging parties. Since that decision, the New Mexico Public Regulation Commission switched from a five-member elected body to a three-member panel appointed by the New Mexico governor.
Avangrid and PNM had previously said they had amended the merger agreement to extend things until April 20, 2023.
