Enlight Secures Nearly $150 Million in Tax Equity Financing for Quail Ranch

Core Insights - Enlight Renewable Energy has secured a tax equity partnership with Wells Fargo for its Quail Ranch project in New Mexico, marking its fifth such partnership in the U.S. and bringing the total value of its U.S. tax equity arrangements to nearly $1 billion [1][5]. Project Overview - The Quail Ranch project consists of 128 MW of solar generation capacity and 400 MWh of energy storage, with a total investment of $275 million. It is expected to achieve commercial operation by the end of 2025 [3][4]. - Once operational, the project is projected to generate approximately $24 million in annual revenues and an EBITDA of around $17 million in its first full operating year [3]. Financial Details - Under the agreement, Wells Fargo will provide tax equity financing, including an initial contribution of $131 million, which is expected to rise to nearly $150 million over the first 10 years of operation [2][5]. - The financing will enable the project to benefit from production tax credits (PTC) for the solar component and investment tax credits (ITC) for the storage component, along with qualifying for a 10% Energy Community Adder under the Inflation Reduction Act [5]. Strategic Importance - The project is supported by a 20-year busbar power purchase agreement (PPA) with Public Service Company of New Mexico (PNM), ensuring stable, long-term revenues [4]. - The partnership with Wells Fargo is seen as a significant step in scaling Enlight's U.S. platform and reflects the strength of the project and the robustness of its portfolio strategy [6].