ENERGY
A New York developer wants to construct the new energy facility on Albuquerque’s West Side
Bernalillo County officials are in negotiations with the New York renewable energy developer DESRI over the details of $1.2 billion in industrial revenue bonds for a utility-scale solar and battery storage project west of Albuquerque.
County Commissioner Barbara Baca is sponsoring an industrial revenue bond resolution, which will likely come up for a vote in the next few months.
All five commissioners in a May 27 meeting unanimously adopted Baca’s proposal to consider the industrial revenue bonds, or IRBs. And now, county staff is negotiating with DESRI officials about what community benefits policies the developer will offer, such as workforce training. Details are being ironed out in advance of the commission vote, according to Baca.
“The developer has agreed to meet with our West Side neighborhoods, meet with our union representatives to do some sort of project-labor agreement,” Baca said.
In total, DESRI wants to build up to 400 megawatts of solar panels and 400 megawatts of battery storage arrays near a 345-kilovolt transmission line west of Atrisco Vista and north of Interstate 40 in an area known as Estrella. The $1.2 billion figure for the IRBs matches the private investment by DESRI to build the project.
Marcos Gonzales, the county’s economic development director, said in an interview that the resolution will likely be brought up to the full commission for a vote in late August or early September.
IRBs do not offer any taxpayer money to companies. Rather, they give developers abatements on certain taxes for the life of the bond. Companies awarded such bonds must also meet certain performance benchmarks to receive the tax breaks. Contracts contain clawback provisions in case a developer fails to meet obligations.
Typically, IRBs allow the recipient to waive property taxes, and in exchange, the county assumes ownership of the property for the term of the bond.
However, Gonzales said that is not the case here; there’s no property tax exemption in this project. Rather, he said, DESRI will get abatements on personal property and gross receipts taxes.
A spokesperson for DESRI declined to comment.
BernCo Investors LLC owns the land, said Gonzales. BernCo Investors was formed by Albuquerque real-estate company Garrett Development Corp.
The project will create six full-time jobs — four operators and two electricians — with median salaries of nearly $102,000, DESRI told the county. Construction will support 1,622 direct and indirect jobs, generating a total of $93.7 million in salaries.
“This is good for the county because of the investment in additional infrastructure,” Gonzales said. “So while the project may not be a large job creator, it will fund other projects that will be good for job creation and also adding in additional infrastructure to meet the Energy Transition Act and allow us to grow our grid with more sustainable energy.”
Gonzales was referring to Gov. Michelle Lujan Grisham’s 2019 law that requires the state to transition to 100% carbon-free power by 2045.
A Bernalillo County summary of the project says the “likely” purchaser of the power will be Public Service Company of New Mexico.
County economic development staff “determined the project offers a reasonable return on investment” and therefore recommended the board approve it.
Construction is scheduled in three phases, the first beginning in the fourth quarter of this year and the last ending in the second quarter of 2029, according to a commission summary of the project.
“Without IRB financing, this project could not proceed to utilize associated economic incentives to construct and equip this project in Bernalillo County,” county staff wrote.
DESRI has built more than 500 megawatts of solar and battery projects in the state. Recently, DESRI partnered with Tierra Adentro Growth Capital on two projects in northwestern New Mexico, where it will help construct 270 megawatts of solar energy and 180 megawatts of battery storage.
Justin Horwath covers tech and energy for the Journal. You can reach him at jhorwath@abqjournal.com.
Coach Eric Olen’s recruiting vision is realized as transfer Hudson Mayes finally unites with teammates Uriah Tenette and Jake Hall.
Albuquerque Islamic Center asked to defer appeal hearing ‘due to safety concerns’
Tuesday night’s incident marks fourth Albuquerque police shooting in an 11-day period
Great SW track and field meet opens Thursday
While one Democratic candidate’s event centered on Indigenous heritage, the other’s embraced the state’s cowboy traditions on primary night
Both gubernatorial nominees say they plan to run positive general election campaigns
6 wolves die in Arizona, 11 in New Mexico as Fish and Wildlife offers $50,000 rewards for poaching convictions
Game returns to traditional pre-Christmas slot, receives standalone TV window
Rural, conservative counties supported Doug Turner in Republican primary
Local events planned for Corrales, Pecos and Las Cruces
National Enrichment Facility in Eunice is the nation’s only facility that enriches uranium for nuclear fuel
Secretary of state describes election as ‘successful,’ despite logistical challenges
Races had been too close to call Tuesday night
Foster defeats Rep. Marian Matthews by 42 votes in House District 27 race

source