Chicago, United States [RenewableEnergyWorld.com] Acciona announced yesterday the closing of two simultaneous project finance transactions — a tax equity and a debt transaction — which, in combination with sponsor equity from Acciona will provide long-term funding for the approximately $252 million capital investment in the company’s 123-MW Red Hills Wind Farm that went online this spring.
The deal is a sign that the tax equity market may be moving again after a long period of inactivity due to the financial crisis.
JP Morgan Capital Corporation led the tax equity investment and co-invested with an affiliate of Union Bank, N.A. in a $100 million equity investment.
“While the tax credit investor and lending markets have experienced constrained capital availability, U.S. based institutions are still committing to new renewable energy project investments,” said Susan Nickey, CFO of Acciona Energy North America.
Red Hills Wind Farm is the first renewable energy project that Acciona developed and built in the state of Oklahoma. Using 82 of the company’s 1.5-MW wind turbines, Red Hills Wind Farm is expected to generate enough clean energy to power over 40,000 U.S. homes and offset approximately 294,000 tons of CO2 emissions annually. The facility is spread across 5,000 rural acres.
The energy generated at the wind farm is sold to Western Farmers Electric Cooperative in a 20 year power purchase agreement.