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Energy industries

Wells Fargo Joins Enlight's New Mexico Project with $131 Million Tax Equity Financing

Strategic Insights

— 2 min read

Enlight Renewable Energy, a global renewable energy IPP and developer, has announced that its U.S. subsidiary Clärnera Holdings has closed a tax equity agreement with Wells Fargo Bank N.A. for the Quail Ranch project in New Mexico. The project, a co-located solar and energy storage project totaling 128 MW of solar generation and 400 MWh of energy storage, involves a total investment of $275 million. Under the agreement, Wells Fargo will provide tax equity financing, including a contribution following commercial operation (COD) of $131 million, expected to increase to nearly $150 million when including pay-go contributions over the first 10 years of operation.

The Quail Ranch project is expected to generate annual revenues of approximately $24 million in its first full operating year and EBITDA of around $17 million. The project shares interconnection infrastructure with Atrisco, leveraging Enlight's "Connect and Expand" strategy to utilize large interconnections for incremental capacity and cost efficiencies. Quail Ranch benefits from a 20-year busbar power purchase agreement (PPA) with Public Service Company of New Mexico (PNM), an investment-grade offtaker, consistent with Enlight's U.S. projects to date and providing stable, long-term revenues over the contract term.

Key Takeaways:

  • The Quail Ranch project is a co-located solar and energy storage project totaling 128 MW of solar generation and 400 MWh of energy storage, involving a total investment of $275 million.
  • Wells Fargo will provide tax equity financing, including a contribution following commercial operation (COD) of $131 million, expected to increase to nearly $150 million when including pay-go contributions over the first 10 years of operation.
  • The project is expected to generate annual revenues of approximately $24 million in its first full operating year and EBITDA of around $17 million.
  • Quail Ranch shares interconnection infrastructure with Atrisco, leveraging Enlight's "Connect and Expand" strategy to utilize large interconnections for incremental capacity and cost efficiencies.
  • The project benefits from a 20-year busbar power purchase agreement (PPA) with Public Service Company of New Mexico (PNM), an investment-grade offtaker.
  • Quail Ranch is expected to qualify for the 10% Energy Community Adder under the Inflation Reduction Act.
  • This is Enlight's fifth tax equity deal in the United States, bringing the company's U.S. portfolio to nearly $1 billion in tax equity arrangements.

Statistics:

  • Total investment in the Quail Ranch project: $275 million.
  • Tax equity financing provided by Wells Fargo: $131 million.
  • Expected increase in tax equity financing to nearly $150 million over the first 10 years of operation.
  • Annual revenues expected in the first full operating year: $24 million.
  • EBITDA expected in the first full operating year: $17 million.
  • Total value of Enlight's U.S. tax equity arrangements: nearly $1 billion.

Sources:

  • GlobeNewswire, "Wells Fargo Joins as Tax Equity Partner for Enlight's New Mexico Project", November 3, 2025.

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