Signing of Tax Equity Agreement for Oriana Solar Project by Sabanci Renewables Inc.
As previously announced to the public, Sabanci Renewables Inc., in which Sabanci Holding holds 100% shares through Sabanci İklim Teknolojileri A.Ş., signed an agreement on 12 September 2024 to provide financing of 137 million USD to the project by Tax Equity Investor* (Tax Advantaged Equity Investor) for the Oriana Solar Project, which consists of a solar power plant with a capacity of 232 MW and an energy storage facility with a capacity of 60 MW, which is under construction and targeted to be commissioned in the second quarter of 2025.
With the signing of the agreement, the confidence of the investor group, which consists of medium and large-sized banks and financial institutions, in Sabancı Renewables Inc. and its projects has become concrete and all financing transactions of the project have been completed. As a result, the share of capital provided by Sabancı Renewables Inc. in the project is circa at 25%, while the ratio of external financing provided by the credit institutions and Tax Equity Investor is approximately 75%.
With the completion of the construction of the Oriana Solar Project, Sabanci Renewables Inc. will have a total renewable energy portfolio of 504 MW in the USA. Sabanci Renewables Inc. is closely exploring sustainability-focused growth opportunities in the North America.
* Tax Equity mechanism provides financing and tax incentives to US-based organizations that meet various criteria to encourage carbon emissions reduction and support renewable energy investments.