UNM to receive $9.6 million for Grid Modernization to advance campus electrification, strengthen energy resilience

The University of New Mexico is modernizing its grid with the launch of a state-funded project that will electrify campus heating systems, deploy battery energy storage, and reduce carbon emissions across UNM's Albuquerque campuses.

This project is an important component of the 2025 UNM Sustainability Strategic Plan and is aligned with Goal 1: Energy Usage and Greenhouse Gas Reduction.

Funded through the New Mexico Energy Minerals & Natural Resources Department (EMNRD) Grid Modernization Program, the project represents a major step toward UNM's goal of reducing carbon emissions while maintaining an efficient, reliable, and sustainable energy network.

"This $9.6 million investment in grid modernization reflects who we are as an institution - one deeply invested in ensuring the wellbeing of this campus and this community for generations to come. It is a meaningful step forward in our Sustainability Strategy, and shows what is possible when we are willing to pilot new ideas rather than waiting for someone else to prove them first."

- UNM President Steve Goldstein

UNM's Albuquerque campuses relies on a district energy system powered by natural-gas fired cogeneration turbines and steam systems. This project pilots a transition away from natural gas-derived steam heating by utilizing water-to-water heat pumps and existing chilled water infrastructure to electrify heating in campus buildings. A second component involves the installation of a battery energy storage system that will store electricity in periods of excess and deploy it when demand on the grid is high, helping smooth out the variability of renewable resources.

The lessons learned from these heating conversions and the battery energy storage system pilot efforts will inform future phases of UNM's grid modernization. Future phases envision a full campus transition to a geoexchange system, replacing natural gas with a carbon-free heat source.

"This $9.6 million investment in grid modernization reflects who we are as an institution -one deeply invested in ensuring the wellbeing of this campus and this community for generations to come," said UNM President Steve Goldstein. "It is a meaningful step forward in our Sustainability Strategy, and shows what is possible when we are willing to pilot new ideas rather than waiting for someone else to prove them first. By changing how we control the climates in our buildings, we're doing our part to address climate change-significantly reducing our carbon footprint and building a model that others across the state, and across the nation, can learn from."

"This award reflects our commitment to responsible stewardship of UNM's infrastructure and long-term sustainability," said Teresa Costantinidis, executive vice president of Finance and Administration. "By taking steps to modernize how we power and heat this campus, we are making smart investments in UNM and the planet's future."

This award reflects the collaborative efforts of the UNM Office of Sustainability, Facility Services' Utility Services and Energy & Engineering Services teams, and Lobo Energy Inc. to advance the university's sustainability goals and practical solutions to climate challenges.

"This project represents a significant step toward meaningfully reducing the university's greenhouse gas emissions," said Office of Sustainability Director Anne Jakle. "It is our hope that UNM's approach can serve as a model for other entities to modernize their district energy systems and reduce their carbon footprint."