US renewables developer Swift Current Energy has closed a tax equity investment from tech giant Google for its 800MWdc (593MWac) solar PV project in the US state of Illinois.
The tax equity financing uses provisions from the Inflation Reduction Act, including Energy Communities and domestic content adders.
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The Double Black Diamond Solar project is currently under construction and expected to reach commercial operations by early 2025. As the engineering, procurement, and construction (EPC) partner, Swift Current selected EPC contractor McCarthy Building Companies, while modules are supplied by cadmium telluride (CdTe) thin-film solar manufacturer First Solar, with which Swift Current has secured over 2GW of module capacity over the past few years. Whereas solar trackers for the 800MW solar PV project are from US tracker manufacturer Nextracker.
Construction financing for the project was previously secured through financial entities Mitsubishi UFJ Financial Group (MUFG), Société Generale, Truist and ING.
Amanda Peterson Corio, Global Head of Data Center Energy at Google, said, “As we work to responsibly grow our infrastructure, we need to partner with companies like Swift Current who understand the nuances of the energy markets where we operate and can help unlock new clean energy at a rate that matches the pace and scale of demand growth on electric grids today.”
Corporate world interest in tax equity investment
Interest from the corporate world in renewable energy projects through tax equity investment has been on the rise. US retail giant Walmart recently partnered with community solar developer Pivot Energy through a tax equity investment for the construction of a portfolio of 19 projects. Projects are located across five different states, Illinois, Colorado, Maryland, Delaware, and California, while the combined capacity of the community solar projects will reach 72MW.
Energix Renewables, Google sign 1.5GW solar PV energy agreement
In related news, Google has signed a strategic long-term agreement with independent power producer (IPP) Energix Renewables.
The initial agreement involves 1.5GW of solar PV capacity development in the US until 2030 with the possibility of expanding it. Electricity generated from the solar PV projects will be supplied to Google along with Renewable Energy Credits (RECs).
Both companies have already signed the first two power purchase agreements (PPAs), however the length of the PPAs nor the capacity of the projects under these two PPAs has been disclosed.
With this agreement, the IPP said it will strengthen its capacity to develop its pipeline of projects in PJM, a regional transmission organisation which covers 13 states in the US.
“This joint effort with Google not only strengthens our position in the PJM market but also opens up opportunities for future expansion into other power markets, we expect to deliver the 1.5GW in the next 2-3 years,” said Asa Levinger, CEO of the Energix Group.
Although the technology used for the construction of the 1.5GW solar PV portfolio has not been disclosed, it is more likely that Energix Renewables will be using First Solar’s CdTe thin-film solar panels after signing a 5GW module supply agreement last year. Under the agreement, the modules will be supplied between 2026 and 2030.
