The syndicate also includes Wells Fargo Wind Holdings LLC and Metropolitan Life Insurance Company.
The syndicate will release funds in the fourth quarter of 2012, subject to fulfilment of requirements outlined in the capital contribution agreement, at which point a tax equity agreement will be signed by the parties. The project is supported by a long-term power purchase agreement.
EFS Chisholm LLC holds a 51% cash equity stake in the project, and EGP-NA holds the remaining 49%. EGP-NA has an option to purchase 26% of EFS Chisholm’s interest in 2012 and 2013.
Tax equity agreements under US fiscal law allocate tax benefits from renewable energy generation companies to passive investors. Under the tax equity agreement that will be entered into with the above mentioned syndicate, the latter will make a cash contribution of an overall amount of approximately 220 million US dollars to the Chisholm View project jointly owned by EGP-NA and EFS Chisholm in return for an equity interest with voting rights. This equity interest will allow the syndicate to obtain a percentage of the fiscal benefits attributed to the Chisholm View project.
EGP provided a parent company guarantee, not extended to the return on the investment, for EGP-NA’s obligations under the capital contribution and tax equity agreements.
Francesco Starace, Enel Green Power CEO and General Manager, stated: ‘We are pleased about the closing of this agreement, which further demonstrates the Group’s commitment to North America. Enel Green Power has a diversified footprint in this region, in which we mainly operate hydro, wind, geothermal as well as solar capacity. We wish to expand this capacity further by leveraging on such a multi-technology approach, which, along with a presence in 16 countries, makes EGP unique in the global renewables scenario.’
Enel Green Power North America, a subsidiary of Enel Green Power, is a leading owner and operator of renewable energy plants in North America with projects operating and under development in 21 U.S. states and three Canadian provinces. EGP-NA owns and operates more than 70 plants with an installed capacity totalling 1,088 MW powered by renewable hydropower, wind, geothermal, solar and biomass energy.
Enel Green Power is the Enel Group company fully dedicated to the development and management of renewable energy sources in Italy and throughout the world. The company generated 22.5 billion kWh in 2011 from water, sun, wind and the Earth’s heat – enough to meet the energy needs of more than 8 million households and avoid the emission of over 16 million tons of CO2 into the atmosphere.
Enel Green Power is a world leader thanks to its well-balanced generation mix, which includes all major renewable technologies. The Company has an installed capacity of nearly 7,100 MW from a mix of sources including wind, solar, hydroelectric, geothermal and biomass. Currently, EGP has over 650 operational plants in 16 countries in Europe and the Americas.