Eolian closes first tax equity financing for standalone projects utilizing new IRA2022 ITC

Eolian has closed the first tax equity financing for a pair of standalone storage projects in ERCOT using the Investment Tax Credit enabled by the Inflation Reduction Act of 2022, said sources familiar with the situation.

The projects, which utilize lithium-ion batteries, are the Madero and Ignacio projects totaling 200 MW in Mission, Texas.

The projects are 100% merchant with no offtake or hedges.

The projects are located at a critical area of the Texas grid, deep in the McAllen-Harlingen load pocket and will provide the region with a flexible and resilient resource which will improve regional operational reliability. This is considered one of the larger merchant energy storage projects in the world.

The standalone storage ITC tax credit, included in IRA2022, established a base tax credit of 6% and bonus rate of 30% over 10-years, assuming it hits prevailing wage and apprenticeship requirements.

Eolian did not return calls seeking comment.

*This story was originally published exclusively for NPM subscribers earlier this month.


New Project Media (NPM) is a leading data, intelligence and events company dedicated to providing origination led coverage of the renewable energy market for the development, finance, advisory & corporate community.