Recurrent Energy, a solar and energy storage project developer and a wholly owned subsidiary of Canadian Solar announced that it signed a $103 million tax credit facilitation agreement with Bank of America for the 160 MW North Fork Solar Project. The already-operational project is located southwest of Oklahoma City.
NordLB and Rabobank provided project financing for the project. CRC-IB and Latham & Watkins advised Recurrent Energy on the tax credit transfer transaction.
Oklahoma Municipal Power Authority (OMPA) will purchase 100% of the electricity produced by the project under a 15-year agreement. Recurrent Energy began developing the North Fork Solar project in 2018. The company 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.
Karen Fang, Global Head of Sustainable Finance at Bank of America, remarked, “This transaction demonstrates our ability to support clients by helping build a new market for transferable tax credits. As part of our $1.5 trillion commitment to deploying and mobilizing sustainable finance capital by 2030, we are focused on accelerating and scaling renewable energy projects like North Folk Solar.”
According to Mercom’s Q1 2024 Solar Funding and M&A report, large-scale project funding announced in Q1 2024 came to $13 billion in 62 deals, a decrease of 24% quarter-over-quarter compared to $17.1 billion in 60 deals in Q4 2023.
Recently, Green Genius, a renewable energy company, secured €87 million (~$94 million) in debt financing for the construction of a 121 MW solar project in Jekabpils, Central East of Latvia. The company received funding from two banks, of which €26 million (~$28 million) was provided by Berenberg Bank, while Nord LB loaned €61 million (~$66 million).
