Avangrid, part of the Iberdrola Group, and Copenhagen Infrastructure Partners (CIP) have announced that the 806MW Vineyard Wind 1 project closed a first-of-its-kind tax equity package for commercial-scale offshore wind with three US-based banks. The project is under construction.
The $1.2 billion investment transaction reached with JP Morgan Chase, Bank of America and Wells Fargo, is the largest single asset tax equity financing and the first for a commercial scale offshore wind project, according to the developers.
“Finalising this tax-equity transaction is a critical milestone in executing the financing plan for Vineyard Wind 1,” said Avangrid CEO Pedro Azagra. “It will allow us to continue financing the project to make it operational.”
“The Inflation Reduction Act marked the most significant action Congress has taken on clean energy and climate change in our nation’s history, and today’s announcement is a critical reminder of the impact the IRA is having here at home,” added Massachusetts congressman Bill Keating.