Orsted Receives $680 Million in Financing for Solar + Storage

Ørsted has received an investment from J.P. Morgan for $680 million in tax equity financing for a portfolio of solar and storage assets in Texas and Arizona. 

The project portfolio consists of Eleven Mile Solar Center, a 300 MW solar and 300 MW storage project in Pinal County, Ariz., and Sparta Solar, a 250 MW solar project in Mineral, Texas. 

Eleven Mile will receive a one-time investment tax credit for its BESS, while the solar farm will generate production tax credits over a 10-year period.  

The tax equity partnership with J.P. Morgan includes the option for tax credit transferability. 

“Ørsted is an experienced developer and operator of renewable energy projects in the U.S., including offshore and onshore wind, solar and battery storage, all of which will generate tax credits valuable to investors,” says James Giamarino, CCO for the Americas at Ørsted.  

“With this new market unlocked by the IRA, we’re excited to continue our tax equity partnership with J.P. Morgan and bring on new entities looking to advance the U.S. renewable energy industry, support job growth and promote local economic development.”  

The tax equity investment will help fund the completion of both projects, which are expected to commence commercial operations this year. 

Latham & Watkins served as legal counsel for Ørsted. Milbank served as legal counsel for J.P. Morgan.