Sabanci Renewables, the North American subsidiary of Turkish conglomerate Sabanci Holdings, has successfully raised $185 million in tax equity funding from US investor Advantage Capital. The funding is earmarked for the completion of the Cutlass Solar II project, a 272MW solar venture located in Fort Bend County, Texas.
The tax equity funding from Advantage Capital is pivotal for Sabanci Renewables to finalize the construction of the Cutlass Solar II project. Commercial operations at the facility are anticipated to commence in April 2024. The electricity generated by the project will be integrated into the grid managed by the Electric Reliability Council of Texas (ERCOT), overseeing 90% of the state's electricity.
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Ismail Bilgin, CEO of Sabanci Renewables, expressed satisfaction in partnering with Advantage Capital for the company's inaugural renewable energy project in the United States. The successful collaboration underscores Sabanci Renewables' execution capabilities in a competitive market and challenging environment.
Sabanci Renewables acquired the Cutlass Solar II project on October 22 from US renewables developer Advanced Power. This acquisition was part of a broader agreement between the two companies, which also involved Sabanci Renewables obtaining the 232MW Oriana solar-plus-storage project in Texas. Construction for the Oriana project is expected to commence in the first quarter of the upcoming year, featuring a 60MW/120MWh battery storage facility.
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Advantage Capital highlighted that its funding for the Cutlass Solar II project would benefit from federal Investment Tax Credits (ITC), a mechanism encouraging increased investment in businesses by allowing deductions of a percentage of investment costs from taxes. Legislative support, such as the Inflation Reduction Act (IRA), plays a crucial role in fostering new investments in the US renewables sector.
This funding announcement aligns with recent initiatives in the US, including the Treasury's guidance on the 45X Advanced Manufacturing Production Credit, aimed at promoting domestic renewables manufacturing and leveraging tax credits to stimulate investment in the sector.
