Ørsted, JP Morgan close US$680 million financing for US solar and solar-plus-storage projects
Summary
The company will also build the Sparta project alongside its Helena Energy Center, a 518MW solar-plus-wind project that is \xd8rsteds first co-located wind and solar project.The Eleven Mile project will benefit from some of the supportive investment opportunities provided by the Inflation Reduction Act (IRA) in the US, with its solar component to generate production tax credits (PTCs) over the next ten years, while its storage component will receive a one-time investment tax credit (ITC).The companies also announced that the deal includes the option for tax credit transferability, another new IRA mechanism to make ITCs easier to trade between companies. Financing firm Evergrow completed the first such transfer transaction in October last year, and Carl Fleming of law firm McDermott Will & Emery told PV Tech Premium that such mechanisms will drive a new wave of mega deals in the US solar space.With this new market unlocked by the IRA, were excited to continue our tax equity partnership with JP Morgan and bring on new entities looking to advance the US renewable energy industry, support job growth and promote local economic development, said James Giamarino, chief commercial officer for the Americas at \xd8rsted.Last December, \xd8rsted announced that it had signed a power purchase agreement (PPA) with social media and data giant Meta to sell the majority of power generated from the Eleven Mile project.