EDF, Enlight advance solar-plus-storage projects in Southwestern US

Situated on private land in the Santa Teresa area of Doña Ana County, New Mexico, the Milagro solar-plus-storage project is designed to store electricity generated during peak hours in a series of batteries.

EDF stated that the project created around 200 jobs at peak construction and is expected to generate approximately US$18 million in tax revenue for Doña Ana County and its school districts, supported by the Industrial Revenue Bond (IRB).

New Mexico has actively promoted BESS development. In 2023, the state Senate approved legislation requiring investor-owned utilities to operate 2GW/7GWh of energy storage by 2034.

As reported this week by Energy-Storage.news Premium, Investor-owned utility Southwestern Public Service Company (SPS) is requesting authorisation from the New Mexico Public Regulation Commission (NMPRC) to develop a new portfolio of eight self-build energy projects.

The portfolio features two BESS projects with a combined capacity of 472MW/1.88GWh, one in New Mexico and one in Texas, along with new solar, wind, and fossil gas facilities. SPS is pursuing expedited regulatory approval for these new assets to address what it describes as a “significant capacity deficit.” 

In March, EPE and EDF also announced operations of the 10MW Chihuahuan Desert solar facility in San Elizario, Texas, as part of the Texas Community Solar programme.

In August, Copenhagen Infrastructure Partners (CIP) acquired full ownership of EDF’s 1GWh Beehive BESS in Arizona. That project also has a 20-year tolling agreement with Arizona utility Arizona Public Service Company.

Enlight secures US$340 million for 940MWh Arizona project

Also happening in Arizona, IPP Enlight Renewable Energy has closed two tax equity partnerships totalling nearly US$340 million for its 290MWdc/940MWh solar-plus-storage Roadrunner project.

The agreements were closed through Enlight’s US subsidiary Clēnera Holdings.

The initial agreement with J.P. Morgan Chase Bank concerns the project’s 290MW solar component. It features a tax equity contribution at the commercial operation date (COD) and additional pay-go payments during the first 10 years of operation.

The second agreement with M&T Bank and First Citizens Bank offers tax equity financing for the 940 MWh storage component at COD.

Together, the two partnerships account for about US$340 million in tax equity commitments at COD, with expectations to rise to nearly US$390 million when pay-go contributions are included.

In December 2024, ESN reported on Enlight’s announced financing for Roadrunner, which totalled US$550 million.

That financing was split between a US$290 million term loan and US$320 million of tax equity funding on the project’s commercial operation date (COD). 

A representative for Enlight confirmed with ESN that the US$320 million tax equity funding has increased to US$340 million.

All procurement contracts for Roadrunner are signed. The project has a 20-year busbar PPA with utility Arizona Electric Power Cooperative (AEPCO).

Roadrunner now involves a total investment of US$621 million. Enlight says the solar generation component has initiated production of test energy, and the project is expected to achieve full commercial operation by the end of 2025.

Once fully operational, it is expected to generate annual revenues exceeding US$50 million in its first full year of operation and EBITDA of approximately US$40 million.

The company also anticipates that the solar component will benefit from Production Tax Credits (PTC), while the storage component is expected to receive Investment Tax Credits (ITC). Additionally, the project is projected to qualify for the 10% Energy Community Adder.

In April, Enlight announced the financial close of its 128MW solar and 400MWh BESS Quail Ranch project in New Mexico. That project is also expected to be operational this year.