Boralex hired KeyBanc Capital Markets to sell down all or portion of a 582 MWdc portfolio of safe-harbored projects in New York, said sources familiar with the situation.

The portfolio consists of the 260 MWdc Two Rivers project in St. Lawrence County and 322 MWdc Fort Covington project in Franklin County, both in Zone D in grid operator NYISO.

Both projects were safe-harbored via a transformer purchase in 1Q25 and had long-term I-REC contracts signed in 2Q25. Both projects expect to execute interconnection agreements in 4Q25 and be construction ready in 3Q26.

Both projects are underpinned by 20-year Index REC (I-REC) contracts with NYSERDA.

These contracts were awarded as part of NYSERDA’s 2024 Renewable Energy Standard Competitive Solicitation for the purchase of New York Tier-1 Eligible Renewable Energy Certificates (RECs). Each REC represents the environmental attributes of one megawatt-hour of electricity generated from an eligible renewable source such as solar energy.

Total project costs are approaching roughly USD 1bn.

Safe Harbor

Safe harboring has become a huge issue as of late as the One Big Beautiful Bill continues to get debate in the US Senate. While the House version of the tax-and-spending bill contemplated a sunset of tech-neutral tax credits within 60 days of the bill passing, the Senate Finance Committee draft contemplated that investment tax credits (ITC) and production tax credits (PTC) for solar-and-wind projects would gradually sunset starting in 2026 and 2027, before rolling off completely in 2028. The Senate’s final version, expected to be voted as early as Monday, June 30th, then called for solar and wind projects to have the full benefit of the ITC and/or PTCs, if they are placed into service by end of 2027.

This has caused some of the larger IPPs such as Doral Renewables and Clenera Renewable Energy to come out publicly about safe harboring parts ahead of any cliff on its near-term projects.