E.On Climate & Renewables North America is working with a tax equity investor to finance a solar project in Texas.
State Street is providing the tax equity commitment for the 100 MW West of the Pecos project, which is located in Reeves County and due to be online within the next 12 months.
E.On secured a 20-year power purchase agreement for half of the project's output last year with a subsidiary of South Korean energy services provider SK E&S last year (PFR, 6/12/18) and broke ground on the project in February of this year.
The sponsor and tax equity investor are negotiating the terms of the deal and have requested the Texas Public Utility Commission’s approval of a transaction by Oct. 19.
The size of the investment and involvement of any advisers could not immediately be established. A spokesperson for State Street in Boston declined to comment, while spokespeople for E.On in Austin, Texas, did not respond to inquiries by press time.
State Street's renewables tax equity division is run by David Levy, who has been with the firm for six years and succeeded his former boss, Santosh Raikar, in December, after Raikar left for a private equity firm (PFR, 12/6/18).
Earlier this year, State Street invested tax equity in Engie North America’s 276 MW Solomon Forks wind project near the city of Colby in northwestern Kansas, alongside Bank of America Merrill Lynch and HSBC (PFR, 4/24).