The CFO of Goldman Sachs-backed US battery storage developer-operator GridStor discussed its recent investment tax credit (ITC) transfer deal for a California BESS project, highlighting some downsides as well as positives from the new mechanism.
Energy storage investment tax credits (ITC) were priced more highly than any other clean energy type in transferability transactions last year, according to a report from tax credit ecosystem Crux which its CEO discussed with Energy-Storage.news.
Blackstone and Foss & Company have completed transferability investment tax credit (ITC) deals for BESS projects in California and Texas, a market which has grown “faster than anyone expected” according to tax credit ecosystem Crux.
A tax credit transaction worth US$60 million using new transferability mechanisms from the Inflation Reduction Act has closed, for a BESS project deployed by Energy Vault for W Power and Wellhead Electric.
Renewable energy developer and operator Arevon has completed the financing for a 600MWh solar and storage project in California, US, including US$191 million of investment tax credits (ITC) provided using new transferability provisions.
The transferability provisions under the Inflation Reduction Act (IRA) in the US “will unlock billions” in capital for clean energy, said financing firm Evergrow as it claimed the first tax credit transfer transaction.
Just over a year ago, the passing of the Inflation Reduction Act brought in what has been considered the biggest legislative action on climate seen in the US.
