Quick Take: The Tres Amigas Superstation in eastern New Mexico is arguably the most important transmission project in the United States. It is promoted as a national gateway to allow electricity to flow freely back-and-forth between West and East. The additional capacity would make it possible to build large wind and solar farms in the region with confidence the power could be shipped to other states. Now new roadblocks have arisen that throw its future in doubt. And that's a bad thing, for renewables developers, for the region and for the country. – Jesse Berst

To date, the developers have raised $25 million against the $500 million cost of the first phase. Negotiations for the additional funds are going well, but Tres Amigas needs Public Service Company of New Mexico and the eastern grid’s Southern Power Pool to sign agreements to interconnect with their transmission lines before closing the financing.

Once phase one is underway, the project will need another $1.4 billion for the final two phases. But that financing will require an interconnect agreement with ERCOT, the Texas Independent System Operator. ERCOT worries that the interconnect could give FERC authority over the Texas grid, and is holding out for a FERC waiver.

Background on Tres Amigas…

Why Tres Amigas is attracting international attention

Opposition to Tres Amigas Superstation? CEO blows it off

First-ever linkage of America’s three big grids

Jesse Berst is the founder and chief analyst of Smart Grid News.com, the industry's oldest and largest smart grid site. A frequent keynoter at industry events in the U.S. and abroad, he also serves on advisory committees for Pacific Northwest National Laboratory and the Institute for Electric Efficiency. He often provides strategic consulting to large corporations and venture-backed startups. He is a member of the advisory boards of GridGlo and Calico Energy Services.