IPPToday #128: EDPR exchanges interests in US wind and solar projects for US$507 million tax equity
- EDP Renováveis S.A. (EDPR)
- Bank of New York Mellon
- Hoosier Energy Rural Electric Cooperative, Inc.
- Wabash Valley Power Association
- Siemens Gamesa
- Dairyland Power
- Southern Maryland Electric Cooperative (SMECO)
- 600 MW Meadow Lake wind complex in Indiana
- 99.1 MW Redbed Plains wind farm in Oklahoma
- 98 MW Quilt Block Wind Farm in Seymour
- 66 MW Hog Creek wind park in Hardin County, Ohio
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EDP Renováveis, S.A. (EDPR), through its fully owned subsidiary EDP Renewables North America LLC, has completed two tax equity financing deals in exchange for interests in four wind and three solar projects in the USA. The total financing amounts to US$507 million.
The four wind farms in question are 100 MW Meadow Lake V, 99 MW Redbed Plains, 98 MW Quilt Block and 66 MW Hog Creek. EDPR has received US$439.6 million of tax equity financing from Bank of New York Mellon in exchange for interests in these projects. US$115 million of this sum was funded in September 2017. EDPR has not disclosed the % stakes exchanged.
Meadow Lake V is the fifth phase of Meadow Lake Wind Farm, which is located in White County, in north-west Indiana. The expansion comprises 50 turbines and was completed in September 2017. EDPR signed 20-year PPAs with Hoosier Energy and Wabash Valley Power Association.
Redbed Plains is located in Grady County, 40km south-west of Oklahoma City. It consists of 48 turbines: 31 Gamesa G114 2.1 MW wind turbines and 17 Gamesa G114 2 MW wind turbines.
Quilt Block is located in the south-west of Wisconsin. It commenced commercial operations in November 2017. The energy produced is purchased by Dairyland Power through a long-term PPA.
Hog Creek is located in Hardin County, Ohio. It consists of 30 turbines, provided by Vestas. EDPR have signed a long-term PPA for the wind farm with the Southern Maryland Electric Co-operative.
EDPR also exchanged undisclosed interests in three solar plants for a further US$67.6 million of tax equity financing. It has not confirmed whether this financing has also been provided by BNY Mellon or another financier.
The solar plants are located in the state of South Carolina and collectively have an installed capacity of 60 MW. The plants were installed in December 2017. EDPR has secured long-term PPAs for all of them.
These are EDPR’s first transactions closed after the 2017 US Tax Bill was passed and signed into law. The institutional partnership structures established enable an efficient utilization of the fiscal benefits to be generated by the projects.
The projects in question belong to EDP Renewables North America's extensive national portfolio: 41 wind farms and two solar parks, amounting to over 5.8 GW.