Sign In  |  Register  |  About Daly City  |  Contact Us

Daly City, CA
September 01, 2020 1:20pm
7-Day Forecast | Traffic
  • Search Hotels in Daly City

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Avangrid and Vitol Reach Landmark Transfer Agreement for $100 Million of Production Tax Credits

Deal cements Avangrid as an early mover in single year as-generated credit transfers

Avangrid, Inc. (NYSE: AGR), a leading sustainable energy company and member of the Iberdrola Group, and Vitol Inc. today announced that they have reached a landmark transfer agreement for an estimated $100 million of 2023 production tax credits (PTCs) from eight operating wind farms, totaling 1,134 megawatts of generating capacity. The agreement marks one of the largest publicly announced deals to-date since the passage of the Inflation Reduction Act (IRA), and it cements Avangrid as an early mover in single year as-generated credit transfers.

“The Inflation Reduction Act offers an unprecedented stable framework, enhancing the attractiveness of renewables,” said Pedro Azagra, Avangrid CEO. “It has created a tax credit transfer process that is streamlined and removes the bottleneck that existed with the tax equity investment structure. We expect this transaction to serve as a reference point in this rapidly expanding market. The transfer ensures that we receive greater value from our renewable energy projects, and it will allow us to pay down debt and make further capital investments to benefit our customers.”

“We are delighted to partner with Avangrid through this tax credit investment, part of Vitol’s broader strategic investment in renewable resources and the energy transition,” said Rick Evans, CFO of Vitol Inc. “This new tax credit transfer mechanism promises to unlock significant pools of new capital to support investment in renewable resources.”

The IRA created a new transferable credit framework to help developers monetize PTCs. Under the IRA, renewable energy owners like Avangrid who qualify for tax credits but are not able to use them immediately can transfer credits to a third-party investor, such as Vitol. Prior to the IRA, this was only possible through a tax equity partnership, which requires a lengthy diligence and negotiation process as well as significant transaction costs.

The 2023 PTCs included in the transfer agreement with Vitol are from eight of Avangrid’s wind farms:

  • Baffin Bay
  • Deerfield
  • Desert Wind
  • Klondike II
  • La Joya
  • Tule
  • Trimont
  • Twin Buttes II

Avangrid expects to continue active participation in PTC transfers and will continue to push at the edges of this developing market.

Avangrid is the third largest wind operator in the United States with 8.6 gigawatt of installed capacity and is leading the development of the country’s large-scale offshore wind market. Avangrid operates a robust portfolio of 75 wind and solar facilities in the country and has a presence in 24 states. These facilities are not only helping states reach their environmental goals by generating clean electricity and reducing carbon emissions but are also constantly bringing important benefits to the communities where we operate by creating local jobs and boosting economic growth.

About Avangrid: Avangrid, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $41 billion in assets and operations in 24 U.S. states, Avangrid has two primary lines of business: networks and renewables. Through its networks business, Avangrid owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Through its renewables business, Avangrid owns and operates a portfolio of renewable energy generation facilities across the United States. Avangrid employs more than 7,500 people and has been recognized by JUST Capital in 2021, 2022 and 2023 as one of the JUST 100 companies – a ranking of America’s best corporate citizens. In 2023, Avangrid ranked first within the utility sector for its commitment to the environment. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2023 for the fifth consecutive year by the Ethisphere Institute. Avangrid is a member of the group of companies controlled by Iberdrola, S.A. For more information, visit avangrid.com.

About Vitol: Vitol is a leader in the energy sector with a presence across the spectrum: from oil through to power, renewables and carbon. Vitol’s clients include national oil companies, multinationals, leading industrial companies and utilities. Founded in Rotterdam in 1966, today Vitol serves clients from some 40 offices worldwide. It is invested in energy assets globally including: 17 m m3 of storage globally, circa 500 k b/d of refining capacity, over 7,000 service stations and a growing portfolio of transitional and renewable energy assets. To date Vitol has committed over $2 bn of capital to sustainable energy initiatives worldwide. In addition to a sizeable presence in renewable generation, Vitol is investing in initiatives to decarbonize other uses of energy, such as renewable gas for transport, the electrification of fleet vehicles, hydrogen and RNG for pipeline gas, as well as carbon capture and storage for heavy industry. Revenues in 2022 were $505 billion. For more information: www.vitol.com

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 DalyCity.com & California Media Partners, LLC. All rights reserved.