Ørsted has divested a 50% equity stake in three US solar and battery projects to Energy Capital Partners (ECP) for $572m. The projects include Mockingbird Solar (468MW) and Sparta Solar (250MW) in Texas, as well as the Eleven Mile Solar Center in Arizona, which combines 300MW of solar power with 300MW/1,200MWh battery storage.
Details of the transaction
The projects, all of which have secured tax equity partnerships and power purchase agreements, are scheduled to begin operations in late 2024. Ørsted will retain the remaining 50% ownership and continue operating the assets.
The divestment aligns with Ørsted’s capital recycling programme, generating proceeds to support its mid- and long-term growth targets. The financial impact will be recorded in Q4 2024 and Q1 2025, subject to conditions precedent.
Ørsted’s partnership with ECP and funding progress
In 2024, Ørsted raised $734m in upfront tax equity funding from JP Morgan and signed its first long-term tax credit transfer agreement for the Mockingbird Solar Center. Combined proceeds from the divestment and tax equity funding exceed $1.3bn.
This transaction builds on Ørsted’s existing partnership with ECP, which previously acquired a 50% stake in three wind farms and a solar farm in 2022.
Statements from stakeholders
James Giamarino, Ørsted’s commercial head for the Americas, stated that the divestment supports Ørsted’s growth ambitions and creates long-term value for partners.
ECP principal Matt Himler praised the projects as prime examples of large-scale clean energy infrastructure essential for meeting US electricity demand and highlighted ECP’s commitment to investing in Ørsted’s renewable energy assets.
Expanding Ørsted’s US portfolio
The addition of Mockingbird, Sparta, and Eleven Mile projects brings Ørsted’s US onshore wind, solar, and battery storage portfolio to over 6GW, reinforcing its role in advancing renewable energy infrastructure.