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Enel secures tax equity funding for 300MW Red Dirt wind project

CTBR Staff Writer Published 18 August 2017

Enel Green Power North America (EGPNA) has inked a near $340m worth tax equity deal with MUFG and Allianz Renewable Energy Partners of America for its 300MW Red Dirt wind project.

By paying the amount, MUFG and Allianz will acquire 100% of “Class B” equity interests in the wind farm in Oklahoma owned by EGPNA subsidiary Red Dirt Holdings.

Through their stake, the two investors will be entitled to receive a portion of the fiscal benefits of the Red Dirt wind farm in compliance with certain conditions laid out by the US tax laws.

For EGPNA, the transaction secures the funding commitment by MUFG and Allianz.

The Enel Group’s US renewable energy company will retain 100% of its ownership of the “Class A” interests and thereby keep the management control of the Red Dirt wind farm.

The company stated that the funding from the investors is anticipated to be closed after the Red Dirt wind farm begins commercial operation.

The $420m Red Dirt wind project is slated to commence operations by the year end.

Upon being operational, the wind farm is expected to produce around 1,200GWh annually which is equivalent to meeting of the energy consumption requirements of over 97,000 US homes.

The wind farm is expected to offset nearly 860,000 tonnes of CO2 emissions each year.

As part of two long-term agreements, the Red Dirt wind farm will sell 160MW of the power it generates to T-Mobile USA and 140MW power to Grand River Dam Authority.