Tax-equity financing inked for huge Arizona solar project
Box Canyon, a large-scale 300-megawatt solar power project south of Phoenix in Pinal County. has closed on a a $260 million tax-equity financing commitment.
The Box Canyon solar project is owned jointly by Florida-based BrightNight and Toronto-based Cordelio Power LP, which in turn is owned by the Canada Pension Plan Investment Board.
J.P. Morgan, through one of its affiliates, and Capital One NA will provide the tax-equity financing for the project. The financing is structured as a partnership flip to monetize production tax credits.
Norton Rose Fulbright represented the sponsors in the transaction. Milbank represented the tax equity investors.
In May, BrightNight and Cordelio closed on a $414 million construction credit facility to move the project forward, backed by a syndicate including U.S. and Canadian banks
The Box Canyon solar project is the largest renewable energy procurement in the history of the Southwest Public Power Agency. Expected to go into operation in the first half of 2025, this project is part of a 2-gigawatt Arizona portfolio owned by BrightNight and Cordelio.
“We are delighted to partner with J.P. Morgan and Capital One to help the residents of Arizona meet their power needs and achieve their sustainability goals,” said BrightNight CEO Martin Hermann, in a statement. “With over 900,000 MWh of projected annual production, the Box Canyon Solar Project is a model of utility-scale renewable power. It will provide reliable, affordable clean energy to local communities, while creating long-term economic benefits, well-paying American jobs, and strengthening the region’s energy security.”
The Box Canyon solar project will generate enough electricity to power 77,000 Arizona homes and businesses annually. According to an economic impact study by Elliott Pollack and Associates, the project will generate $47 million in Pinal County economic impact during the construction period.
Through their joint venture LLC, BrightNight and Cordelio signed a long-term solar lease for the Box Canyon project in October 2023, covering 2,087 acres along State Route 79, north of Arizona Farms Road, according to Pinal County records. The company said it will make lease payments worth $65 million over the life of the project.
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