ENGIE North America, an independent power producer and energy efficiency services provider, has signed a major tax equity financing for its renewables portfolio.
The portfolio consists of 2.0 GW of renewable assets, comprised of 1.5 GW of onshore wind and 0.5 GW of utility-scale solar PV projects (11 farms in total). These assets are located in key markets, including the Electric Reliability Council of Texas (ERCOT), Southwest Power Pool (SPP), and Pennsylvania, New Jersey, Maryland Power Pool (PJM).
Through the transaction and subject to meeting certain funding conditions, ENGIE North America has secured financing through tax equity commitments of up to $1.6 billion on the projects through Bank of America and HSBC. Projects will be funded as they are commissioned beginning in April.
“This is an important step in our zero-carbon energy transition in the U.S., and we are excited to have the support of our partners, Bank of America and HSBC in this tax equity financing,” says Gwenaelle Avice-Huet, executive vice president of ENGIE and CEO of ENGIE North America.
“The financing enables us to pursue our commitment to sustainable energy and increase our renewables footprint in the U.S. with this 2.0 GW under development and construction for 2020,” adds Avice-Huet.
As part of this transaction, ENGIE North America has received proceeds for two wind farms: East Fork, a 196 MW wind project in Thomas County, Kan., and Jumbo Hill, a 161 MW wind project located in Andrews County, Texas.
Tax equity financing is the traditional structure used in the U.S. to support the development of renewables projects.