Inflation Reduction Act

Clean energy platform Peregrine Energy Solutions has signed an agreement with environment-focused investment firm Greenprint Capital to sell multi-year production tax credits (PTC) from the Old Gold Energy Center.

Greenbacker Capital Management (GCM) has completed, through an affiliated investment vehicle, a $148 million tax equity financing commitment with RBC Community Investments.

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The broad benefits of the Inflation Reduction Act of 2022 (IRA) has meant tax equity has never played a more crucial role in driving investment in renewable energy projects in the US. Yet, while many project finance practitioners have been busy readying themselves to take advantage of this new and improved tax equity regime, the devil – as always – remains in the details. To shine some much-needed light on the evolving space PFR has brought together a panel of experts on tax equity to review the latest developments and innovations in this fascinating area of renewable energy finance, as well as the outlook for the coming years.

Innergex Renewable Energy has secured a $534 million construction loan and term financing and $49 million letter of credit facility for its 329.8MW Boswell Springs wind project in Wyoming.

While many column inches have been filled extolling the broad benefits of the Inflation Reduction Act of 2022 (IRA), the power sector has been impatiently waiting for guidance from the US Treasury for greater clarity on some tax equity fine print — most notably, the concept of transferability.

Strata Clean Energy has closed on tax equity investments to fund two standalone battery energy storage systems.

Solar manufacturer CubicPV has secured over $100 million to fund its US factory plans and product pipeline. Cubic’s leading shareholder, SCG Cleanergy, made contributions along with Hunt Energy Enterprises and Breakthrough Energy Ventures.

The US power sector is experiencing a remarkable influx of foreign investments, with companies from across the globe pouring billions of dollars into clean energy projects bolstered by the Inflation Reduction Act (IRA).

The move towards a greener US power industry through investments in new clean energy technologies is being aided by government policy and dollars, but risks remain for all participants with a number of exogenous factors impacting ‘green’ financing.