Capital One Bank (McLean, VA, U.S.) has acquired a tax equity stake in the Crescent Dunes Solar Energy Project with an investment of up to USD 78 million, SolarReserve LLC (Santa Monica, California, U.S.) announced on January 17th, 2017.
Crescent Dunes is a utility-scale CSP facility featuring SolarReserve’s proprietary molten salt energy storage technology, enabling day and night operation. The facility delivers 110 megawatts of electricity plus 1,100 megawatt-hours of energy storage to Nevada’s grid under a 25-year power purchase agreement with NV Energy, Nevada’s largest utility.
SolarReserve, project developer and managing investor, along with initial equity investors ACS Cobra, and Santander will maintain their ownership stake in the project, a demonstration of their continued commitment to the project.
Crescent Dunes is an utility-scale CSP facility featuring SolarReserve’s proprietary molten salt energy storage technology, enabling day and night operation.
“We are very pleased to announce this new partnership with Capital One.”
“U.S.-developed innovative renewable energy technologies hold the promise of the expansion of U.S. exports, creation of jobs in the solar industry, and strengthening of the nation’s economy,” said Kevin Smith, Chief Executive Officer of SolarReserve.
“SolarReserve’s American innovation deployed at the Crescent Dunes facility is a model for projects around the globe.”
“This investment will help provide affordable, on-demand energy to thousands of consumers in communities across Nevada, and also supports Capital One’s sustainable energy initiative,” added George Revock, Managing Director and Head of Alternative Energy and Project Finance at Capital One Bank.
Once a solar energy project has completed construction and is commercially operating, developers often secure investment partners with income structures that can more efficiently utilize the tax benefits created by the investment in the project.
Now that the Crescent Dunes project is in commercial operations, the initial equity investors, led by SolarReserve, secured Capital One as a tax equity investor as part of their strategy to bring in additional long term investment into the project.