An affiliate of Copenhagen Infrastructure Partners (CIP) has entered into a tax equity financing arrangement with Bank of America for a 347MW solar farm in the US state of Texas.
The Greasewood project is located in Pecos County and has three long-term power purchase agreements with unnamed investment-grade municipalities and a hedge agreement with a major US financial institution.
Construction of Greasewood started in October 2019 and it is expected to reach commercial operations in December this year.
CIP senior partner Christian Skakkebaek said: “CIP is pleased to have secured this tax equity transaction, particularly in today’s market where we are dealing with such headwinds as the Covid-19 pandemic, the sharp drop in oil and gas prices and unfavorable macroeconomic forecasts.
“The achievement is a testament to our long-term conviction in the renewable energy markets in the US.
“We look forward to bringing the Greasewood project online, furthering our commitments to providing clean energy to the Texas ERCOT market.”
CohnReznick Capital acted as financial advisor to CIP on the transaction.