El Rito Media More work needed to be done before Eddy County issued millions of dollars in bonds to a Colorado company for a large renewable energy battery facility north of Carlsbad, said the James “Bo” Bowen chairperson of the Eddy County Board of County Commissioners.

Bowen said most utility projects are ready for work to begin before Eddy County issues industrial revenue bonds (IRBs).

“This one doesn’t seem it’s quite there,” he said after Tuesday’s County Commission meeting as Peregrine Energy presented information on the proposed Pecos River Energy Storage System Project.

Bowen said further discussions might be needed with the Boulder based multi-technology clean energy company before bonds are issued.

In its proposal Peregrine sought an IRB of $230 million for up to 30 years to construct a 150-megawatt (MW) storage unit on nearly 30 acres north of Carlsbad near the George Shoup Relief Route.

The project would be on private land outside of the Carlsbad City Limits, read the proposal.

IRBs are used as a tool encouraging business expansions and locations, job growth and capital investment, according to information from the State of New Mexico.

Peregrine Energy’s proposal stated no public funds were used in IRBs and the request bonds did not impact Eddy County finances.

Peregrine Project Manager Dustin Ingram said the proposed site would house nearly 100 individual battery storage units inside a building looking like a shipping container.

The proposed facility would connect with Xcel Energy power lines and provide energy capacity during high demands for electricity, Ingram said.

The U.S. Energy Information Administration (EIA) noted most energy storage facilities in the United States used the electric power grid as a charging source.

Moving forward, Eddy County Manager Roberta Gonzales said commissioners would vote on an inducement resolution.

She said the resolution committed the county to going ahead with the proposed project.

“If it is approved then an ordinance would be voted on granting the IRBs,” she said.

Gonzales said commissioners could vote on the resolution in the next two months. In its proposal, Peregrine suggested further engagement with Eddy County in the IRB process.

Mike Smith may be reached at 575-308-8734 or by email at msmith@currentargus.com.