Origis Energy raises $317m for solar and battery storage projects in New Mexico and Mississippi
Origis Energy, a leader in America’s renewable energy and decarbonization solutions, has announced a substantial milestone, securing $317 million in project tax equity funding from J.P. Morgan. This investment is earmarked for two utility-scale solar and solar plus battery storage projects located in New Mexico and Mississippi, marking a significant advancement in the nation’s renewable energy infrastructure.
Key Projects: Escalante Solar and Golden Triangle II
The Escalante Solar project, a 200 MWac solar plant under construction in southwest New Mexico for Tri-State Generation and Transmission Association, has reached an important milestone with over 250,000 solar panels installed. Set to go live in 2024, the project is located on the site of the former coal-fired Escalante Station, symbolizing a shift to cleaner energy sources.
In Mississippi, the Golden Triangle II, a 150 MWac solar project with 50 MW/4 HRs (200 MWh) of energy storage, is also scheduled for completion in 2024. It is part of Origis Energy’s extensive initiative in the state, representing the largest solar plus storage deployment in Mississippi.
Advancing Clean Energy: Origis Energy’s Utility-Scale Solar Projects Backed by J.P. Morgan’s Funding
Innovative Approach and Decarbonization Goals
This initiative is a critical part of Origis Energy’s mission to provide clean energy and enhance grid resiliency. Vikas Anand, COO & CFO of Origis Energy, highlighted the importance of this collaboration with J.P. Morgan, underscoring the shared commitment to decarbonization and grid resilience.
Leveraging Tax Incentives for Sustainable Development
The tax equity agreement utilizes incentives of the Inflation Reduction Act, with the Investment Tax Credit (ITC) for Golden Triangle II and the Production Tax Credit (PTC) for Escalante Solar. This strategic financial approach underscores the growing support for renewable energy projects in the United States.
Broader Impact and Growth in Renewable Energy
Construction financing for these projects is part of Origis Energy’s $750 million Construction Financing Facility announced in August 2023. This funding aims to develop approximately 2 gigawatts of project capacity across 15 states over the next three years.
Norton Rose Fulbright and Hunton Andrews Kurth LLP provided legal counsel for Origis Energy and J.P. Morgan, respectively, in this transaction.
Origis Energy’s securing of $317 million from J.P. Morgan is a testament to the growing confidence and investment in renewable energy. This funding not only accelerates the development of utility-scale solar projects but also demonstrates the financial sector’s crucial role in supporting sustainable energy initiatives. Origis Energy’s projects, particularly in New Mexico and Mississippi, are set to make significant contributions to the U.S. clean energy landscape, fostering a more sustainable and resilient energy future.