Albuquerque and Phoenix-based Southwestern Power Group (SWPG) is developing the RioSol Transmission Line, an HVAC transmission line covering 557 miles through New Mexico and Arizona.
The transmission line project represents a private capital investment and operational expenditures of more than $2.4 billion. About $244 million in development expenditures are expected through 2025, prior to any announcements.
According to an independent report from Energy Economic & Environmental Consultants, the project will create 2,626 jobs during its construction and utilization. The investment will enable new economic opportunities for renewable energy generation, with local wind and solar energy resources to be developed along its route.
SWPG is planning to construct eleven substations along the RioSol transmission line to deliver 1,600 MW of renewable energy to communities. RioSol will generate $1.17 billion in new economic activity in Arizona and New Mexico.
While construction is expected to start in 2026, it will be completed in 2028. The project is in its late stage of development, having completed the major federal and state permits along with right of way acquisition. The second line of the original SunZia Transmission Project, RioSol is paralleling the SunZia line, under construction by Pattern Energy.
The financial benefits provided to New Mexico ($667 million) and Arizona ($506 million) will generate an estimated economic impact of $1 billion over the project’s construction, and more than $3 billion over the project’s lifespan.
The project is predicted to create 2,626 job years; 1701 of which are directly created by the construction of the transmission lines. According to Energy Economic & Environmental Consultants, the other 926 job years will be qualified for operations and maintenance activities over a 30 year period.
The total projected construction costs are expected to exceed $1.75 billion. Operations and maintenance expenditures from 2028 will create economic and fiscal impacts of nearly $12.3 million per year and total nearly $368 million by 2058, once completed.
The project originates in east-central New Mexico and the 1.6 GW of transmission capacity in this area will allow for capital investment and facilitate development of New Mexico’s available wind and solar resources. Torrance County is the eastern terminus of RioSol which traverses 349.4 miles through Valencia, Socorro, Sierra, Luna, Grant, and Hidalgo counties, powering local New Mexico communities with New Mexico energy, before continuing its path through Arizona.
· Total employment: 1,034 Job-Years
· Annual Wages: $53.9 million
· Local impacts: $451.4 million
· Government Fiscal Benefits: $94.5 million
The project traverses 207.5 miles and five Arizona counties including Greenlee, Graham, Cochise, Pima, and Pinal before terminating into the grid southeast of Phoenix. Its HVAC design will permit New Mexico energy to be available to Arizona communities. Arizona’s solar-rich energy will be distributed throughout the state or sold to communities in New Mexico.
· Total employment: 621 Job-Years
· Annual Wages: $37.3 million
· Local Impacts: $265.9 million
· Government Fiscal Benefits: $98.5 million
