Origis Energy, a vertically integrated renewable energy platform and a solar project developer, secured $317 million project tax equity financing from J.P. Morgan to develop two utility-scale solar and solar plus storage projects. The renewable energy projects are located in New Mexico and Mississippi.
The Escalante Solar project is currently under construction and has a capacity of 200 MWac. The project is being built on the site of a former 253 MW coal-fired Escalante Station, which was retired in 2020. The project is expected to come online in 2024.
The second project, the Golden Triangle II, is a 150 MWac solar project along with a 50 MW/200 MWh energy storage project and is also expected to be completed in 2024. The project is one of three Origis Energy plants under construction in Mississippi. The projects will deliver clean energy and grid resiliency at competitive rates under Power Purchase Agreements executed between Origis Energy and the Tennessee Valley Authority (TVA).
The tax equity agreement leverages both the Investment Tax Credit (ITC) and the Production Tax Credit (PTC) incentives of the Inflation Reduction Act. The deal utilized the ITC for Golden Triangle II, and for Escalante Solar, the PTC provision is being utilized.
Norton Rose Fulbright represented Origis Energy in the transaction. Hunton Andrews Kurth LLP acted as J.P. Morgan’s counsel.
“J.P. Morgan is one of the largest financiers of clean energy, and this collaboration ensures Escalante Solar and Golden Triangle II meet key customer goals for decarbonization and grid resiliency,” said Vikas Anand, Chief Operating Officer & Chief Financial Officer, Origis Energy.
According to Mercom’s recently released Q4 and Annual Funding and M&A report, the value of large-scale project funding deals announced in 2023 reached $44.5 billion in 229 deals, of which 196 were disclosed.
