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In October 2023, Kit Carson Electric Cooperative was awarded a $15 million federal grant from the DOE for rural microgrid development; however, this grant was canceled in 2025 among 321 nationwide terminations. A federal judge ruled against the DOE's selection process, suggesting bias based on state voting patterns.

Despite federal policy shifts, New Mexico's renewable energy sector grew, supplying 50% of the state's electricity in 2024, ahead of its 2045 mandate. The state enacted tax incentives for renewable energy projects to counteract federal rollbacks.

Companies like Maxeon Solar proposed a $1.9 billion factory in Albuquerque but faced challenges, leading to project withdrawal. Desert Mountain Energy also plans a battery manufacturing facility in Roswell, expected to create 180 jobs without relying heavily on government subsidies.