Enel signs tax equity agreement for a wind farm in Usa
Rome - Enel Green Power North America, the U.S. renewable energy company of the Enel Group, acting through its subsidiary Thunder Ranch Wind Holdings, has signed a tax equity agreement worth approximately 330 million U.S. dollars with the Alternative Energy Investing Group of Goldman Sachs and GE Energy Financial Services, a unit of General Electric for the 298 MW Thunder Ranch wind project located in Oklahoma.
Under the agreement, which is a common transaction structure for the development of renewable energy projects in the United States, the two passive investors will purchase 100% of "Class B" and "Class C" equity interests in the project, respectively, in exchange for their payment of the above purchase price. This interest will allow the investors to obtain, under certain conditions set by U.S. tax laws, a percentage of the fiscal benefits of the Thunder Ranch wind project. In turn, EGPNA, through Thunder Ranch Holdings will retain 100% ownership of the "Class A" interests and therefore management control of the project. The agreement secures the funding commitment by the two investors, and the closing of the funding is expected to occur upon achievement of commercial operation of the 298 MW wind farm.
Construction of the Thunder Ranch wind farm started last May, with the facility expected to begin operations by the end of 2017. The overall investment in Thunder Ranch amounts to, approximately, 435 million U.S. dollars, which is part of the investment outlined in Enel's current strategic plan. Once fully operational, Thunder Ranch will be able to generate more than 1,100 GWh annually, providing enough energy to meet the annual consumption needs of more than 89,400 U.S. households, while avoiding the emission of around 790,000 tonnes of CO2 each year.