Origis Energy, a prominent player in America’s renewable energy and decarbonization solutions sector, has announced a significant financial milestone. The company has successfully secured a $317 million project tax equity funding from J.P. Morgan. This substantial investment is earmarked for two utility-scale projects, including a solar and battery storage venture in Mississippi and a solar project in New Mexico.
The first project, Escalante Solar, is a 200 MWac solar plant currently under construction in the southwest. Tri-State Generation and Transmission Association, along with its member electric cooperatives, are the key collaborators in this endeavor. Notably, the project is being developed on the grounds of the former Escalante Station, a 253-megawatt coal-fired facility retired in 2020. The plant is expected to come online in 2024 and marks a pivotal step in Tri-State’s transition towards cleaner energy sources.
The second venture, Golden Triangle II, is a 150 MWac solar project accompanied by 50 MW/4 HRs (200 MWh) of energy storage. Slated for completion in 2024, this project is one of Origis Energy’s trio of plants currently under construction in Mississippi. The combined capacity of 550 MWac solar and 600 MWh battery storage represents the largest solar plus storage deployment in the state. Both projects are set to provide clean energy and enhance grid resiliency at competitive rates through Power Purchase Agreements signed between Origis Energy and the Tennessee Valley Authority (TVA).
Vikas Anand, Chief Operating Officer & Chief Financial Officer at Origis Energy, commented, “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.”
The tax equity agreement leverages the Investment Tax Credit (ITC) and the Production Tax Credit (PTC) incentives provided by the Inflation Reduction Act. For Golden Triangle II, the ITC is utilized, while Escalante Solar leverages the PTC provision.
In addition to the tax equity funding, construction financing has been secured for both Escalante Solar and Golden Triangle II. This financing is part of Origis Energy’s $750 million Construction Financing Facility, announced in August 2023, which aims to fund approximately 2 gigawatts of project capacity across 15 states over the next three years.
The transaction was facilitated with legal representation from Norton Rose Fulbright for Origis Energy and Hunton Andrews Kurth LLP for J.P. Morgan.
