Orsted lands $650 million tax equity deal with JPMorgan
Orsted, a Denmark-based energy company, has secured an investment worth $680 million in tax equity financing from JPMorgan for a portfolio of solar and storage assets in Texas and Arizona.
Under 2022 President Biden’s Inflation Reduction Act, the tax equity allows for tax credit transferability, which corporate buyers can purchase to support clean energy storage projects in the US.
The Biden administration also expects to identify areas in 11 western states best suited for solar energy development by the end of the year.
Read more: Investment in clean energy manufacturing soared to $200 billion in 2023, says new IEA report
European panel manufacturers also seek to develop projects outside the EU due to intense competition from China and the US, where governments support their producers more.
Orsted added that the investment by JPMorgan will help fund the completion of its Arizona project along with its 250 MW solar project in Texas.
Orsted’s 300 MW facility in Arizona will benefit from a one-time investment tax credit for its battery storage system, a key technology as renewable energy capacity increases. Additionally, Arizona’s solar farm will generate production tax credits for the next decade.
Prior to this deal, JPMorgan invested in 1.8 GW of Orsted’s 5.7 GW onshore portfolio in the United States. The energy company expects commercial operations for both projects to begin in 2024.
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