CIP arranges tax equity financing for its 255 MW solar plant in USA

An affiliate of Copenhagen Infrastructure Partners P/S has entered into a tax equity financing arrangement with Bank of America for a utility-scale solar project in Texas, USA.

The Greasewood project is a 347 MWdc/255 MWac solar facility located in Pecos County. The project has three long-term power purchase agreements with investment-grade municipalities and a hedge agreement with a major US financial institution, the result of which is a highly contracted revenue profile. The project began construction in October 2019 and is expected to reach commercial operations in December 2020.

Christian Skakkebaek, CIP Senior Partner, 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 United States. 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.