By Connor Currier
Bernalillo County commissioners will move forward with a proposed $225 million energy storage project that aims to support New Mexico’s transition to renewable energy.
The Board of County Commissioners approved issuing taxable industrial revenue bonds for Corazon Energy Storage LLC with a 3-1 vote. Vice Chair Barbara Baca was absent from the meeting and did not vote.
“The solar and wind, it’s pretty incredible,” said Bernalillo County Chair Eric Olivas on the significance of the project. “I think we’re positioning ourselves very well with renewables.”
The project seeks to build a large-scale battery energy storage facility near the Public Service Company of New Mexico’s (PNM) Pajarito substation in Albuquerque.
This project comes at a time when the safety of battery energy storage systems is under increased national scrutiny. In January, a fire broke out at the world’s largest battery storage facility in Moss Landing, California, operated by Vistra Energy.
The fire, which destroyed the facility’s batteries, led to evacuations and raised concerns about the potential hazards of large-scale battery storage. Residents exposed to the toxic gas from the burning batteries reportedly suffered from severe side effects, which included bloody noses, headaches, sore throats and more.
Experts argue that while these systems are integral to a clean energy future, safety standards and regulations need to be robust to prevent incidents that could jeopardize public safety and further challenge the viability of such technologies.
The facility is designed to store excess renewable energy generated during peak production periods from sources like wind and solar. This stored energy can then be released during high-demand times, helping balance the electric grid and provide backup power in the event of outages.
Some other county commissioners seemed skeptical of the deal because of the lack of economic jobs it will bring in total. Bernalillo County Commissioner Walt Benson of District 5 was the only commissioner not to vote in favor of issuing the bonds.
“Why other IRBs have not passed is because of the lack of evidence of strong economic development,” said Benson. “We’ve had other IRBs with much more evidence of strong economic development that didn’t pass.”
“There’s one job associated with this, I believe, and that’s my biggest hesitation,” Benson said.
Benson’s comments were met with a rebuttal from Bernalillo County Economic Development Director Marcos Gonzales, who was in favor of seeing this deal saying, “While it’s not a big job creator, it does provide that consistency that a lot of companies are looking for when they are looking to locate it in the area.”
“As we’re pushing on-site readiness as a state with other infrastructure, we need to be looking at power as one of them as well,” said Gonzales.
However, Olivas sympathized with commissioner Benson’s concerns over the lack of guaranteed jobs, but decided to support the deal anyway because of its climate benefits.
“I share your concern, Commissioner Benson, and I’m 100% there. I think for this one, thinking about it from a climate and affordability perspective, I agree with it,” Olivas said.
These bonds will enable Corazon Energy Storage LLC to obtain tax exemptions on the equipment and construction costs associated with the facility. The total estimated project cost is $190 million, with up to $225 million in bonds potentially being issued to cover the equipment procurement.
While the county will not lend its credit or incur any debt through the bond issuance, the bonds are expected to be repaid through the project’s revenue. The deal’s broader benefits lie in its role in helping PNM meet New Mexico’s ambitious goal of transitioning to a 100% zero-carbon energy grid by 2040.
For the county, approving the bond could mean a significant economic boon, as Corazon Energy Storage would make an initial $2 million payment to the county, along with additional payments.