Aerial view of Eleven Mile Solar in Coolidge, Az. Photo: Van Applegate Danish renewable energy developer Orsted won a $680 million investment from JPMorgan in two U.S.
projects as incentives from the Biden Administration's signature climate law — the Inflation Reduction Act (IRA) — spur a clean energy boom in the U.S. JPMorgan will provide tax equity financing for Orsted's Eleven Mile Solar Center, a 600-megawatt solar and storage project near Coolidge, Arizona, and the 250-megawatt Sparta Solar project in Mineral, Texas.
Eleven Mile Solar, which includes more than 857,000 solar panels and 2,000 batteries from domestic manufacturers First Solar and Fluence , respectively, as well as tracking systems from Nextracker , qualifies for a one-time investment tax credit for the storage system, as well as an annual credit from a production tax credit for the solar array. Both credits were extended under the IRA. Clean energy projects have relied on tax equity partnerships for years.
Put simply, large financial institutions provide part of the financing for a renewable energy project, in exchange for the project's tax credits. Developers themselves rarely have high enough tax bills, so a partnership allows them to monetize their credits. watch now VIDEO 1:34 01:34 IRA Money Trail: D.
C. drives clean energy boom Worldwide Exchange But the partnerships are complex and the markets are limited. Smaller developers don't always have the means to enter into these partnerships, and the app.
