The Town of Pagosa Springs was recently notified that the Colorado Energy Office plans to award Pagosa Springs a $140,390 grant to support upgrades to the Pagosa Springs Geothermal Heating District control building. This generous funding will help upgrade and replace portions of the existing geothermal heating system and was granted under the state’s Thermal Energy Network Project Installation Award.
The original geothermal system was installed in the 1980s, and some components have received little to no preventative maintenance since the initial installation. This grant funding will allow for the replacement of the heat exchanger, pumps, instrumentation, and general facility improvements.
The Town is required to match the grant funding, bringing the total project budget to $280,780. At the Town’s June 4 council meeting, the mayor and council unanimously approved the matching funds, which will be paid from the Town’s general fund.
The Colorado Energy Office stated in their Intent to Award letter that the Town’s application was selected to be partially funded because the project serves a variety of customers including low-income residents and stakeholders, where a lack of funding could result in the decommissioning of the facility and create a substantial increase in energy burden for the community.
The letter went on to state that the Energy Office received over 40 applications, and they ultimately increased their initial funding round to approximately $7.7M to accommodate as many projects as possible.
The grant helps fulfill Town Council’s goal of ensuring a well-functioning, updated geothermal heating utility that is financially solvent and a source of community pride. Upgrades can only begin after the formal acceptance process has been completed by the State of Colorado.
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