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    Avangrid agrees USD-100m PTC transfer under new IRA framework

    September 28, 2023 - SeeNews Renewables


      September 28 (Renewables Now) - US sustainable energy company Avangrid Inc (NYSE:AGR), has agreed to transfer an estimated USD 100 million (EUR 95m) of 2023 production tax credits (PTCs) from 1,134 MW of wind farms to energy trader Vitol Inc, taking advantage of a new transferability option in the Inflation Reduction Act (IRA).

      Avangrid, part of Spanish utility group Iberdrola SA (BME:IBE), said on Wednesday that the agreement establishes it as an early mover in single year as-generated credit transfers.

      The IRA allows renewable energy owners that qualify for tax credits but are not able to use them immediately to sell them to a third-party investor, instead of having to go through complex tax equity investment structures.

      “We expect this transaction to serve as a reference point in this rapidly expanding market,” said Avangrid chief executive Pedro Azagra. “The transfer ensures that we receive greater value from our renewable energy projects, and it will allow us to pay down debt and make further capital investments to benefit our customers,” added Azagra.

      Avangrid plans to keep engaging in PTC transfers.

      The deal with Vitol refers to eight operating wind farms -- Baffin Bay, Deerfield, Desert Wind, Klondike II, La Joya, Tule, Trimont and Twin Buttes II.

      (USD 1 = EUR 0.949)


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