ENGIE has announced the signing of an agreement to sell 49% equity interest in a 2.3 GW US renewables portfolio to Hannon Armstrong, a leading investor in climate change solutions. ENGIE will retain a controlling share in the portfolio and continue to manage the assets. On commissioning, this 2.3 GW portfolio which comprises 1.8 GW of onshore wind and 0.5 GW of solar photovoltaic (PV) projects, will represent a major milestone in achieving ENGIE's goal of commissioning 9 GW additional renewable capacity by 2021.
Under the agreement, Hannon Armstrong will take immediate ownership of 49% of 663 MW of commissioned wind projects. The remaining 1.6 GW of projects, currently under construction, will be transferred into the partnership upon commissioning. In line with its majority ownership, ENGIE will continue to consolidate the projects in its accounts.
In April 2020, ENGIE secured US$1.6 billion tax equity commitments, bringing the total tax equity commitments for the portfolio to almost US$2 billion. Tax equity financing is the traditional structure used in the US to support the development of renewable projects.
The portfolio comprises 13 projects (nine onshore wind projects and four solar), located in key markets in the US, including the Electric Reliability Council of Texas (ERCOT), Midcontinent Independent System Operator (MISO), PJM Interconnection (PJM), the Southwest Power Pool (SPP) and PJM Interconnection (PJM).
Read the article online at: https://www.energyglobal.com/solar/02072020/engie-and-hannon-armstrong-ink-agreement/