DE Shaw Renewable Investments (DESRI) has announced the start of construction at the San Juan 1 in New Mexico, US.

The move follows a financial close with DESRI's lenders for the project.

The 200MWAC solar and 100MWAC battery storage facility is located next to the former San Juan Generating Station in San Juan County.

Designed to interconnect to the grid using existing infrastructure, the project is a crucial capacity replacement to the station, which was retired last year.

San Juan 1 is the first phase of a larger project, which is anticipated to supply the grid with a total of 400MWAC in renewable energy once it has been fully designed and built.

As part of a 20-year power purchase agreement with the Public Service Company of New Mexico, the project will supply renewable energy to customers and support its efforts to make all the electricity it generates free of emissions by 2040.

The project is anticipated to become operational in the middle of next year. Photosol US initially developed the project, before divesting it to DESRI last year.

As per metrics from the country's Environmental Protection Agency (EPA), the facility is anticipated to produce enough energy to power approximately 52,400 homes each year.

DESRI CCO Thomas de Swardt said: “DESRI is thrilled to announce the start of construction at San Juan 1.

“As a capacity replacement for a retired coal generator, the project is an important part of New Mexico's transition to state-of-the-art, cost-effective renewable energy, firmed by battery storage.”