With tax equity raises for its Roadrunner and High Lonesome projects in Texas already in the works, Enel Green Power North America is in talks with offtakers.
The company “wants to make a splash in ERCOT” with Roadrunner, said Mark McGrail, associate vice president, energy management, at Enel on the sidelines of the BNEF Summit in New York this week, adding that the first phase of the project is contracted and that the developer is in talks with multiple parties regarding a PPA for the second phase.
The sponsor is working with advisory firm CCA Group to coordinate the financing for the 497 MW Roadrunner facility in Upton County, Texas (PFR, 2/27), and the 450 MW High Lonesome wind farm in Upton and Crockett counties (PFR, 1/9).
An official at CCA did not respond to a request for comment by press time.
The 252 MW (DC) first phase of Roadrunner is under construction and due to be online by the end of the year, while the 245 MW (DC) second phase is scheduled to be online by the end of 2020.
As for the $600 million High Lonesome project, construction began in January and is expected to be completed by the end of the year. The project will receive a fixed price for 295 MW of its output under a 10-year proxy revenue swap with Allianz Global Corporate & Specialty. The swap, executed in collaboration with REsurety, was announced on Jan. 4. The remaining 155 MW will be sold spot.
McGrail expects more creative financing and offtake structures to proliferate as the production and investment tax credits are phased out, particularly in highly liquid, deregulated markets like PJM Interconnection and ERCOT.
Enel could consider PPAs with tenors of six or seven years in lieu of the standard 12- to 15-year term, bringing in its trading division Enel Trading North America to minimize risk, he says.