Ørsted, a US clean energy developer, announced an investment from J.P. Morgan for US$680 million in tax equity financing for a portfolio of solar and storage assets in Texas and Arizona. The project portfolio consists of Eleven Mile Solar Center, a 300 MW solar and 300 MW /1200 MWh storage project in Pinal County, Arizona and Sparta Solar, a 250 MW solar project in Mineral, Texas.
This deal represents one of the largest solar and storage tax equity transactions that uses a combined production tax credit (PTC) and investment tax credit (ITC) structure since the passage of the Inflation Reduction Act (IRA) in August 2022. The Eleven Mile Solar Center will receive a one-time investment tax credit for its battery storage system while the solar farm will generate production tax credits over a 10-year period.
The tax equity partnership with J.P. Morgan includes the option for tax credit transferability. This new tax credit transfer option, created by the IRA, opened a new market for any corporate buyer to support clean energy projects and optimize their federal tax bill through the purchase of tax credits.
Latham & Watkins LLP represents Ørsted in the transaction with a team led by partners Eli Katz and Omar Nazif and counsel Stephen Yeh, with assistance from Deborah Ogali, Nick Eberhart, and Andrea Herman.
Where the legal industry reads first.
Enjoyed this article? Get the biggest legal industry updates, deals, appointments, insights and expert interviews in your inbox, free.
No spam. Unsubscribe anytime.
