Orsted Secures $680 mn Investment from JP Morgan for Solar and Storage Projects

By Editor


Orsted has obtained $680 million in tax equity financing from J.P. Morgan to support a portfolio of solar and storage assets in Texas and Arizona. This financing leverages tax credit transferability under the 2022 Inflation Reduction Act, enabling corporate buyers to purchase tax credits to support clean energy storage projects in the U.S.

In parallel, the Joe Biden administration is working to identify prime areas for solar energy development across 11 western states, with findings expected by the end of the year. This initiative is part of a broader effort to enhance the country’s renewable energy infrastructure.

European panel manufacturers are increasingly looking to develop projects outside the EU, driven by competitive pressures from China and the U.S., where governmental support for producers is more substantial.

Orsted stated that the new investment will aid in completing its 250 MW solar project in Texas and its 300 MW solar facility in Arizona. The Arizona project will benefit from a one-time investment tax credit for its battery storage system, reflecting the growing importance of storage technology in the renewable energy sector. Additionally, Arizona’s solar farm will generate production tax credits over the next decade.

Prior to this deal, J.P. Morgan had invested in 1.8 GW of Orsted’s 5.7 GW onshore portfolio in the United States. Orsted anticipates that both the Texas and Arizona projects will commence commercial operations in 2024.

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