Nuvve Secures Major $400 Million Contract with the State of New Mexico to Drive Fleet Electrification and Grid Modernization
Nuvve Holding Corp., a global leader in grid modernization and vehicle-to-grid (V2G) technology, has been awarded a groundbreaking contract from the State of New Mexico (SONM) to spearhead the state’s ambitious zero-emission vehicle (ZEV) transition and renewable energy goals. Announced on February 25, 2025, this $400 million contract extends over the next four years and marks a significant step toward a cleaner and more sustainable transportation infrastructure in New Mexico.
The contract, which emerged from Nuvve’s proposal submission in December 2024 in response to the SONM’s “Electrify New Mexico” Request for Proposal (RFP), positions Nuvve as the exclusive provider of comprehensive electrification solutions to the state. Importantly, the SONM has not awarded contracts to any other respondents of its RFP, highlighting Nuvve’s unique ability to deliver advanced fleet electrification services.
Transforming New Mexico’s State-Owned Fleets
Under this contract, Nuvve will oversee and implement the electrification of the SONM’s public fleets, including:
- School Buses: A $150 million investment will support the electrification of New Mexico’s fleet of over 2,000 school buses, replacing traditional diesel-powered vehicles with energy-efficient, zero-emission alternatives.
- Transit and White Fleets: The contract also allocates $250 million to the electrification of the state’s transit and white fleet, consisting of more than 3,500 government-owned vehicles used across various state agencies and departments.
This initiative represents a strategic effort to align with state and federal climate goals while also improving air quality, reducing emissions, and cutting long-term operational costs.
Nuvve’s Role in Driving Energy-Efficient Mobility
Nuvve’s CEO and Founder, Gregory Poilasne, emphasized the significance of this partnership: “The collaboration with the State of New Mexico serves as a blueprint for Nuvve’s broader growth strategy. By deploying intelligent energy solutions, we are helping the state reduce energy costs, optimize grid performance, and minimize the need for extensive infrastructure upgrades while promoting energy equity.”
At the heart of Nuvve’s approach is the integration of vehicle-to-grid (V2G) technology, which allows electric vehicles (EVs) to communicate with and contribute energy back to the grid, thereby enhancing grid resilience and stability.
Key Components of the “Electrify New Mexico” Initiative
The contract will support New Mexico’s “Vehicles as a Service” (VaaS) program, designed to facilitate large-scale fleet electrification through:
- Turnkey EV Charging Solutions – Establishment of state-of-the-art EV charging infrastructure, complete with operations and data management systems to ensure seamless fleet management.
- Vehicle-to-Grid (V2G) and Microgrid Development – Implementation of scalable V2G solutions that integrate EV fleets with battery storage and solar energy systems, optimizing energy usage and lowering costs.
- Corridor Charging Stations – Strategic placement of EV charging hubs along key highway corridors to enable long-distance, inter-city electric travel.
- EV Leasing and Infrastructure Financing – Introduction of financial models that reduce upfront costs and streamline the transition to electric fleets.
- Asset Transition and Management – Phased retirement of internal combustion engine (ICE) vehicles, with an emphasis on efficiency and minimal disruption to government operations.
Revenue and Business Opportunities for Nuvve
As the lead contractor, Nuvve will generate multiple revenue streams through various components of the project:
- Electric Vehicle Selection and Qualification: Nuvve will oversee the selection and procurement of electric vehicles for state agencies, ensuring that each vehicle meets New Mexico’s sustainability and performance criteria. The company will also collaborate with financial partners, who will be announced next month, to provide tailored leasing and financing options.
- EV Infrastructure Deployment: The contract includes the implementation of diverse charging solutions, including bidirectional chargers that enable V2G services, feeding stored energy back into the grid. These charging units are expected to yield hardware revenues with gross margins ranging between 20% and 50%, while V2G-related revenues are projected to generate margins of approximately 30%.
- V2G Hubs and Grid Services: To maximize efficiency, Nuvve will develop 24 V2G hubs across New Mexico. These hubs will incorporate solar panels, stationary battery storage, and other grid-supporting technologies to optimize energy distribution. The infrastructure for these hubs will be provided by Nuvve and sourced from its existing partners.
- Stationary Storage Solutions: The company will also deploy energy storage systems integrated with its GIVe™ platform, enabling utilities to better manage grid loads while seamlessly incorporating electric vehicle demand.
- Engineering, Procurement, and Construction (EPC) Services: Nuvve is set to collaborate with New Mexico-based EPC firms for the engineering, procurement, and construction of project sites. Details on these partnerships will be announced soon.
Economic and Environmental Benefits for New Mexico
This contract is expected to yield significant economic, environmental, and technological benefits for the State of New Mexico, including:
- Job Creation: The project will generate numerous employment opportunities across various sectors, from construction and engineering to vehicle manufacturing and energy management.
- Carbon Emission Reduction: By replacing traditional gas-powered vehicles with electric alternatives, the initiative will significantly lower greenhouse gas emissions and improve air quality.
- Cost Savings: The implementation of V2G technology will help lower operational costs by allowing vehicles to store and sell excess energy during peak demand periods.
- Energy Resilience: By integrating EV fleets with the grid, New Mexico will enhance its energy independence and reduce its reliance on fossil fuels.
