New $5.7M EMNRD Grid Modernization Peñasco Microgrid Project Selected for Funding

Our Peñasco microgrid proposal has been selected for funding under EMNRD’s Grid Modernization program. The project includes $3.28M from EMNRD and $2.43M in cost share from Kit Carson Electric Cooperative (KCEC), bringing the total project value to approximately $5.7M.

This project will build a utility-operated edge-of-grid microgrid in northern New Mexico—designed for parts of the distribution system that sit at the feeder edge, where long radial lines, limited redundancy, and exposure to extreme weather and wildfire risk can make outages more likely and restoration more challenging. The microgrid will provide local generation and storage, along with advanced controls, to support reliable service for critical loads and nearby communities during both normal operation and grid contingencies.

Through this project, my team at NMSU will work with KCEC to use the microgrid as a real-world platform for student training and for demonstrating and validating the algorithms and energy management strategies developed at NMSU. Technically, the microgrid will integrate inverter-based resources and battery energy storage with hierarchical controls, including optimal dispatch and real-time energy management in both grid-connected and islanded operation. The project will also evaluate resilience-oriented operation under islanding and disturbance scenarios using field data, with hardware-in-the-loop and edge deployment where appropriate.

In addition, the project will integrate our edge-AI–driven wildfire detection system with the microgrid to enable a highly novel end-to-end demonstration of power system resilience.

EMNRD Grid Modernization program: https://www.emnrd.nm.gov/ecmd/grid-modernization-grant-program/

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Di Shi
Associate Professor of Electrical and Computer Engineering