The activity marks a significant surge compared to farm-ins for solar PV assets in the first three quarters of 2022, which stood at ~300 MW, as per Enerdatics data. The surge is driven primarily by the increase and extension of the 30% investment tax credits (ITCs) and $0.026/kW production tax credits (PTCs) for solar projects, under the IRA, which enhances the economics of solar development. Further, the presence of highly competitive deregulated power markets across the country have increased financiers’ and developers’ appetite to fund and construct merchant power plants. This is augmented by the prevalence of innovative financing structures, such as tax equity, that increase the project’s monetizable capital and revenue stack, and help diversify sources of funding for developers.
Recent deal: European Energy has acquired a majority stake in two early-stage solar development projects in Colorado, totaling 700 MW. The acquisition, along with its recent partnership with Elio Energy to co-develop 2 GW of solar and storage projects, brings its total pipeline in the country to 2.5 GW and helps the company progress on its target of developing 10 GW of renewable capacity in the US by 2026.
Other significant transactions: Greenvolt recently entered the US solar PV market through the acquisition of the 163 MW Goshen Solar Project in Wyoming, while Glennmont Partners established its US presence through a development partnership with GreenGo Energy. Other active European players that have recently farmed in to solar projects in the US include AIP Management, Allianz Capital, and APG.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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