Avangrid and energy firm Vitol have reached what they say is a “landmark” transfer agreement for an estimated $100 million of 2023 production tax credits (PTCs) from eight operating wind farms, totalling around 1.1GW of generating capacity.
The agreement marks one of the largest publicly announced deals since the Inflation Reduction Act (IRA) was signed into law by President Biden last year. It cements Avangrid as an early mover in single year as-generated credit transfers, the companies said.
Under the IRA, renewable energy owners who qualify for tax credits but who are not able to use them immediately can transfer credits to a third-party investor. Prior to the IRA, this was only possible through a tax equity partnership, said the companies.
US-based Avangrid is owned by Iberdrola of Spain. Energy and commodities company Vitol, headquartered in the Netherlands, had 2022 revenues of $505 billion.
“The IRA offers an unprecedented stable framework, enhancing the attractiveness of renewables,” said Pedro Azagra, CEO of Avangrid.
.png)
.png)
