ENGIE North America has announced that it has secured more than $1 billion of tax equity financing, through separate agreements with three banks, J.P. Morgan, Goldman Sachs and BNP Paribas. The financing pertains to a portfolio of recently commissioned renewable projects in the U.S. Furthermore, the overall portfolio includes 6 projects across ERCOT, MISO and SPP, including 950 MW of solar and 353 MW of wind capacity.
ENGIE currently has more than 7 GW of renewable assets combining those in operation as well as construction across the U.S. and Canada. The company has plans to add 4 GW of renewables capacity to its portfolio every year and North America is a very important market for the company.
The company also has plans to bring online 10 GW of energy storage by 2030 globally. It recently commissioned its first solar plus storage co-located project in the US in Texas. It further has 2 GW of additional storage capacity under construction in Texas and other states.
In January 2024, Amazon inked a corporate power purchase agreement (CPPA) with ENGIE to secure the 473 MW output of the Moray West offshore wind farm in Scotland. The deal is part of the e-commerce giant’s plan to run all of its operations entirely on renewable energy by 2025. The wind farm, which is slated to begin operations in 2024, will provide enough energy to power 650,000 UK households per year.
REGlobal’s Views: Equity financing continues to be one of the most preferred routes of financing in the renewable energy sector, especially in attractive and rapidly growing markets like the US. The provisions within the Inflation Reduction Act like tax incentives for renewable energy projects have further made the case stronger for renewable energy financing.
