Enel Green Power North America (EGPNA) has signed a tax equity agreement worth about $365m for the 300MW Rock Creek wind farm in the US state of Missouri.
As per the deal, the investors Bank of America Merrill Lynch and JP Morgan will commit about $365m for 100% of the wind project’s Class B equity interests.
As per the US laws, the stake will allow the companies to receive a certain percentage of the fiscal benefits wind project.
EGPNA, via its subsidiary Rock Creek Holdings will retain 100% ownership of the Class A interests and control the project.
Both the two investors have also committed to provide the funding, which is expected to take place, once the construction and commercial operations stages of the wind farm are achieved.
The total estimated cost of the project is $500m and the tax equity partnership will be supported by a guarantee from the parent company Enel S.p.A.
Construction of the wind farm began in last October and is expected to start its operations by the end of this year.
When fully operational, the wind farm is expected to generate about 1250GWh per year which is enough to meet the annual electricity needs of about 100,000 average US households, while avoiding about 900,000 tonnes of CO2 emissions per year.
EGPNA, a subsidiary of Enel Group, develops and operates renewable energy plants in North America. Presently, it has projects in 23 US states, two Canadian provinces.
In total, it has around 100 renewable plants ranging between hydropower, wind, geothermal and solar energy with a capacity of more than 3.3GW.
Image: EGPNA to get tax equity investment for 300MW wind farm in US. Photo: Courtesy of Steve Ralston/FreeImages.com.