Los Alamos County is grappling with a significant energy management challenge as it faces an excess of 170 megawatts of photovoltaic (PV) power generation. During the Board of Public Utilities Work Session on October 1, 2025, officials discussed the implications of this surplus, particularly the risk of financial losses if they cannot effectively sell the excess power.

The county's energy strategy includes a battery energy storage system designed to optimize the use of generated power. However, officials noted that during the winter months, shorter days limit PV generation, making it more feasible to store energy. In contrast, the summer months present a different scenario, where longer days lead to an overflow of energy that the county may struggle to sell. The worst-case scenario could result in a loss of approximately $70 per megawatt-hour if the county is forced to halt power generation due to an inability to sell the excess.

Compounding these challenges, the county is preparing for its participation in the Extended Day Ahead Market (EDAM), set to launch in late October 2027. This market, part of the California Independent System Operator (CAISO), will require the county to align its energy generation and consumption on a daily basis. As a transmission customer under Public Service Company of New Mexico (PNM), Los Alamos County will have to adapt to this new market structure without the option to opt out.

Additionally, the county has obligations to provide energy to partners like Sandia National Laboratory and Kirtland Air Force Base, which typically require power during daytime hours. This arrangement adds another layer of complexity to the county's energy management strategy, as officials must balance their commitments with the realities of excess generation.

As Los Alamos County navigates these evolving energy dynamics, officials are actively seeking solutions to mitigate potential financial risks and optimize their energy resources. The discussions at the work session underscore the importance of strategic planning in the face of changing market conditions and energy demands.