El Paso Electric has signed a power purchase agreement for a 92 MW CSP plant to be developed by NRG Energy and eSolar.

The plant is expected to be the first commercial-scale solar thermal project in New Mexico when fully operational in the summer of 2011. New Mexico regulators have approved the 20-year contract, according to NRG.

The site for the development is a 450-acre property in southwest New Mexico, about 10 miles from El Paso, Texas near the City of Sunland Park.

New Mexico Gov. Bill Richardson and New Mexico Senators Jeff Bingaman and Tom Udall endorsed the project. Bingaman is chairman of the Senate Energy and Natural Resources Committee. Richardson signed a legislation in 2007 setting a goal that by 2020 one-fifth of the power delivered in New Mexico would be generated by renewable sources including solar power.

NRG will build and own the plant using eSolar’s solar-thermal technology.

NRG and eSolar in February entered into an agreement to develop 500 MW of solar thermal power plants.

Read more: New Mexico, NRG, eSolar