Recurrent Energy has signed a US$103m tax credit facilitation agreement with Bank of America for its 160MW North Fork Solar Project, located south-west of Oklahoma City, which is now operational.
Oklahoma Municipal Power Authority (OMPA), which serves 42 municipally-owned electric systems in Oklahoma, will purchase 100% of the energy produced by North Fork Solar under a 15-year agreement.
Recurrent Energy will continue to own and operate the project in the long-term.
This tax equity agreement marks Recurrent Energy’s first production tax credit transaction and first tax credit transfer transaction.
By transferring tax credits to Bank of America, Recurrent Energy can access funding more quickly and efficiently, the developer said.
At its peak, North Folk Solar employed approximately 500 construction workers. Blattner provided engineering, procurement, and construction services, enlisting several local companies as subcontractors.
During its operation, North Fork Solar will contribute about US$26m to community services.
Recurrent Energy began developing North Fork Solar in 2018.
NordLB and Rabobank provided project financing for North Fork Solar.
CRC-IB and Latham & Watkins advised Recurrent Energy on the tax credit transfer transaction.
OMPA general manager David Osburn said: “OMPA is excited to add the first large-scale solar project to our resource mix.
“This addition will further diversify our energy sources and provide our member cities with more energy options to offer their customers. We look forward to maintaining a long-term relationship with Recurrent Energy.”
Global head of sustainable finance at Bank of America Karen Fangadded: “This transaction demonstrates our ability to support clients by helping build a new market for transferable tax credits.
“As part of our US$1.5tn commitment to deploying and mobilising sustainable finance capital by 2030, we are focused on accelerating and scaling renewable energy projects like North Folk Solar.”
Recurrent Energy chief executive Ismael Guerrero added: “North Fork Solar is now bolstering Oklahoma’s energy growth and resilience.
“We thank our many partners who supported this project from development through to operations. We are pleased to work with our partners at Bank of America to execute one of the market’s first tax credit transfer transactions.”