Enlight Renewable Energy, through its US subsidiary Clēnera Holdings, has completed two tax equity partnership agreements for the Roadrunner solar and battery energy storage system (BESS) project in Tucson, Arizona. The solar component has been backed by J.P. Morgan with a tax equity contribution at commercial operation date (COD) and further pay-go payments over the first 10 years. The energy storage component has received tax equity financing from M&T Bank and First Citizens Bank at COD.
Together, these agreements amount to about $340 million in commitments at COD, with the value projected to increase to nearly $390 million including pay-go contributions. The Roadrunner project has an installed solar capacity of 290 MW co-located with 940 MWh of BESS. It is being developed with a total investment of $621 million, and has a 20-year power purchase agreement with the Arizona Electric Power Cooperative. Moreover, the project has started producing test energy and is expected to reach full commercial operation by the end of 2025.
Once operational, the project is expected to generate over $50 million in annual revenues during its first full year and deliver an estimated earnings before interest, taxes, depreciation, and amortisation of around $40 million. The solar component qualifies for production tax credits, while the storage component will receive investment tax credits. Additionally, the project is expected to receive the 10 per cent energy community adder.
