More
    HomeTOPICSInvestmentSchneider Electric announces tax credit transfer agreement with Engie to achieve its...

    Schneider Electric announces tax credit transfer agreement with Engie to achieve its 100 percent renewable energy goal in North America

    Published on

    spot_img

    Schneider Electric, the leader in the digital transformation of energy management and automation, announced that it has committed to invest in a portfolio of Texas-based clean energy projects utilizing a Tax Credit Transfer Agreement (TCTA) for solar and battery storage systems developed, built, and operated by ENGIE North America (ENGIE).

    The contracted projects are expected to come online throughout 2024 and will enable Schneider Electric to get closer to its 100% renewable energy goal in the U.S. and Canada.

    The agreement between ENGIE, a leader in the net-zero energy transition, and Schneider is among the first at this scale to take advantage of new tax credit transfer provisions in the Inflation Reduction Act (IRA) that will help companies meet their renewable energy goals.

    “Schneider Electric is committed to achieving net-zero emissions across our operations by 2030. This new solar-plus-storage agreement for the U.S. and Canada with ENGIE, a leading developer of renewables, will help us reach that goal,” said Aamir Paul, President, North America Operations. “The IRA opens the door for innovative projects through its transferability clause, and expands the range of entities that can benefit from tax credits in meeting decarbonization objectives. Schneider Electric is a leader in sustainability, efficiency, and the energy transition, and we are proud to ‘model the way’ with this tax credit transfer.” 

    The IRA’s transferability clause enables the transfer of eligible federal tax credits from renewable energy, clean energy manufacturing, and battery storage projects, among other clean energy projects. This new feature creates a feasible alternative to traditional tax equity structures. Tax credit transfer also enables Schneider’s Scope 2 decarbonization when the investor-buyer procures associated environmental attributes as part of the transaction.

    “This collaboration with Schneider signals a real step forward in accelerating the net-zero transition. The solar-plus-storage portfolio, coupled with the innovative tax credit transfer structures enabled by the IRA, helps expand the opportunities for an increasing set of corporate clients to meet their goals,” said Dave Carroll, Chief Renewables Officer and SVP, ENGIE North America. “This approach supports the continued growth of renewable energy and storage options in the U.S., which brings economic opportunities to an expanding set of communities alongside the transition to a lower-carbon grid.”

    According to Bloomberg (BNEF), the IRA’s tax credit transfer rules create a new set of possibilities for funding America’s energy transition. Most intriguing is the market for tax credits, which could greatly streamline the process of getting money to where it is most needed and is a step towards maturity as market participants discover together operating models that can scale.

    Latest articles

    E.ON: Only 10 percent of customers with photovoltaic panels also opted for an energy storage solution

    E.ON Energie Romania installed, in the first 10 months of this year, over 3,500...

    KPMG: Reporting on sustainability is the new normal for largest companies

    With mandatory sustainability reporting nearly upon us in the EU, new research from KPMG...

    RetuRO collected over 3 billion containers in the first year of DRS

    RetuRO, the administrator of the Deposit Return System, marks on November 30 one year...

    DS Smith Zărnești Paper Mill expands partnership with Malaxa Technological High School

    Leading packaging solutions provider DS Smith, through its Zarnesti Paper Mill, continues to invest...

    More like this

    E.ON: Only 10 percent of customers with photovoltaic panels also opted for an energy storage solution

    E.ON Energie Romania installed, in the first 10 months of this year, over 3,500...

    KPMG: Reporting on sustainability is the new normal for largest companies

    With mandatory sustainability reporting nearly upon us in the EU, new research from KPMG...

    RetuRO collected over 3 billion containers in the first year of DRS

    RetuRO, the administrator of the Deposit Return System, marks on November 30 one year...