Government agencies have a unique opportunity to utilize their land for clean energy production, leading to significant environmental, economic, and social benefits. By leasing government property for renewable energy projects, such as solar farms and wind turbines, agencies can generate substantial revenue streams. This revenue not only supports public programs but also reduces dependency on taxpayer funding. Furthermore, these projects drive local economic growth by creating jobs in construction, operation, and maintenance, while fostering innovation in sustainable technologies. Prioritizing renewable energy development on public land also underscores a commitment to reducing greenhouse gas emissions and mitigating climate change, contributing to cleaner air and a healthier environment for future generations.
One example of a government agency actively leveraging its underutilized land for renewable energy development is the State of New Mexico. The State of New Mexico Land Office, responsible for managing the State of New Mexico’s land holdings, came to LandGate seeking to evaluate the renewable energy potential of their land holdings and competitively advertise opportunities for leasing their land for renewable energy. Using LandGate's platform and marketplace for government agencies, the State of New Mexico Land Office was able to analyze the renewable energy of their properties and advertise available properties for lease, generating multiple offers from reputable energy companies. The State of New Mexico has leased a total of 4 properties for green energy through LandGate's marketplace and continues to post listings for properties available for lease.
Key Takeaways
The State of New Mexico has leased a total of 4 properties for renewable energy development through LandGate's marketplace as of Q3 2024
These leases will generate revenue, contribute to local economic growth, and produce clean energy for the State and the local community
Government agencies can advertise available properties for lease for free on LandGate's platform to connect with renewable energy developers actively seeking land to lease for new projects.
Clean Energy Development on Government Property: The State of New Mexico Success Story
The State of New Mexico has ambitious Renewable Portfolio Standards; they are aiming for 40% of their electricity to be supplied from renewable sources by 2025, and 100% of their electricity to be supplied from renewable sources by 2045. The State of New Mexico Land Office manages a staggering 9 million acres of land, which positions them in a strong place to contribute to these goals and generate additional revenue from land leases.
New Mexico listed a 640-acre property for lease for solar energy and battery storage on LandGate’s marketplace in Q1 of 2023. The listing drew in multiple qualified offers, and a winning lessee was selected in June 2023. With the lease agreement secured, the lessee is beginning to develop the designated land as of Q2 2024, bringing the New Mexico Land Office closer to a greener, more sustainable future.
This is just one example of New Mexico's success leasing properties for clean energy through LandGate's marketplace. Three additional listings have since closed, totaling 4 closed listings including 2 upcoming solar farms and 2 upcoming wind farms on State property. Building on their initial success, the State of New Mexico has since listed more properties for lease for clean energy production on LandGate's marketplace, including a ~27,000 acre property in Hidalgo County.
How to Lease Government Land for Clean Energy
As of January 2024, nearly half of U.S. retail electricity sales are covered by mandatory renewable portfolio standards, with many states, localities, and public utilities expected to invest in renewables this year. In order to reach these goals, public land will need to be utilized for clean energy development. Government agencies can support renewable energy through leasing their properties to renewable energy developers, producing clean energy and generating long-tern, reliable revenue.
Public landowners and government agencies interested in leasing their land for renewable energy can list their property for lease for free on LandGate's open marketplace for exposure to a unique network of renewable energy developers and investors. LandGate can accommodate all types of procurement rules, including managed bids and RFP's. Additionally, there is no obligation to accept any offers, and no commissions. If your agency is interested in exploring the renewable energy production potential of its properties for clean energy development, schedule a call with our government team today and learn more below:
