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Enel signs $330m tax equity agreement for 298MW wind farm in US

CTBR Staff Writer Published 09 October 2017

Enel’s subsidiary Enel Green Power North America, acting through Thunder Ranch Wind Farm Holdings has signed a $330m tax equity agreement with Goldman Sachs’ Alternative Energy Investing Group and GE Energy Financial Services for its 298MW Thunder Ranch wind farm in the US.

The wind farm is located in the state of Oklahoma and it is expected to start its operations by the end of this year. Construction on the plant began last May.

Thunder Ranch wind farm requires $435m investment and after the tax equity agreement, the two passive investors will receive 100% of Class B and Class C equity share in the project.

Stake acquisition will help the two investors obtain a percentage of the fiscal benefits in the wind farm, under some of the conditions set by US tax laws. And in turn, Enel will retain 100% of Class A interests and will therefore retain the management of the wind farm.

When fully operational, the wind farm is expected to produce more than 1100 GWh of clean energy annually, which will be enough to meet the electricity requirements of more than 89,400 US households while avoiding up to 790,000 tonnes of CO2 emissions each year.

The wind farm will also be eligible for renewable energy credits and will be supported by long-term agreements for the sale of power, including the recently signed agreement with Anheuser-Busch to supply electricity.

Presently, Thunder Ranch Wind Farm Holdings which is owned by Enel Green Power North America (EGPNA) owns and operates more than 100 renewable energy plants across North America spread across 22 US states and two Canadian provinces.

These projects have a total capacity of more than 3.3GW and include hydropower, wind, geothermal and solar energy. Currently, EGPNA is the second largest wind operator in Oklahoma with eight operating wind projects and is constructing tow more projects, including the Thunder Ranch and the 300MW Red Dirt wind project.

Image: Enel signs tax equity agreement with Goldman Sachs and GE Energy Financial Services. Photo: Courtesy of Steve Ralston/FreeImages.com.