Capital One, MUFG and Toyota Tsusho to Invest in Nevada Solarby
Companies seeking FERC approval for tax-equity investment
The 110-Megawatt Crescent Dunes plant sells power to NV Energy
Units of Capital One Financial Corp., Mitsubishi UFJ Financial Group Inc. and Toyota Tsusho Corp. are seeking federal approval for a tax-equity investment in a 110-megawatt solar-thermal plant in Nevada.
The three companies plan to pay cash for the tax-equity investments, according to a filing Wednesday with the Federal Energy Regulatory Commission. The amount of the investment in SolarReserve Inc.’s Crescent Dunes power plant wasn’t provided.
In tax-equity transactions, clean-energy developers in the U.S. sell tax credits in their projects to investors that can apply the credits to their own tax bills. The arrangement typically appeals to investors with large U.S. tax bases, particularly banks.
Crescent Dunes is located near Tonopah, Nevada, and sells its output to NV Energy Inc. under a 25-year power purchase agreement. Crescent Dunes began commercial operations in November and includes energy-storage technology that lets it produce electricity after sundown. The project receiveda $737 million U.S. Energy Department loan guarantee in 2011.