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Wells Fargo & Company

11/29/2021 | Press release | Distributed by Public on 11/29/2021 12:26

Wells Fargo Makes its First Solar Plus Battery Storage Tax Equity Commitment to D. E. Shaw Renewable Investments

Arroyo project will be one of the largest of its kind in the U.S.

NEW YORK - Wells Fargo Renewable Energy & Environmental Finance group announced today the closing of tax equity financing for the Arroyo Solar and Storage (Arroyo) project with D. E. Shaw Renewable Investments (DESRI). Once operational, Arroyo - a 300 MWAC solar and 150 MWAC/600 MWh battery energy storage system facility developed in McKinley County, New Mexico - will be one of the largest solar and battery projects in the U.S.

Arroyo is Wells Fargo's first tax equity investment in a project with co-located battery storage, and DESRI's first solar project with co-located battery storage to enter construction and financing. DESRI acquired the project from the original developer, Centaurus Renewable Energy.

Arroyo is currently under construction with efforts being made to hire workers locally and from the Navajo Nation. The project is expected to generate as many as 250 jobs during construction.

New Mexico's McKinley county sits in the northwestern part of the state, which has some of the most aggressive environmental goals in the U.S. In 2019, the state passed the Energy Transition Act, mandating 100% carbon-free energy by 2045.

Arroyo has two offtake contracts with Public Service Company of New Mexico (PNM) for the solar and storage output respectively. The facility is expected to generate enough clean energy to power approximately 83,500 homes each year, according to metrics provided by the Environmental Protection Agency. The solar and energy storage will supply a portion of the replacement capacity needed to retire the 847 MWac San Juan Generating Facility, a coal plant located in San Juan County, NM.

"DESRI is thrilled to continue to grow our relationship with Wells Fargo to invest in strong assets like the Arroyo project," said Thomas de Swardt, chief commercial officer of DESRI. "Arroyo is a keystone project for our companies, given the incorporation of energy storage as well as the important role that the facility will play in New Mexico's energy transition."

"Moving towards a low-carbon future and combating climate change are important initiatives for Wells Fargo," said Philip Hopkins, head of Wells Fargo Renewable Energy & Environmental Finance group. "We're proud to use our resources in a meaningful way to invest in projects, like Arroyo, that contribute to that goal."

Wells Fargo recently surpassed $12 billion in cumulative tax-equity investments in more than 500 wind, solar, and fuel cell transactions. As of November 2020, the team's investments have provided 13% of all wind and solar capacity in the U.S. over a 10 year period. In March, Wells Fargo announced a goal of net zero greenhouse gas emissions - including its financed emissions - by 2050, as well as plans to deploy $500 billion of financing to sustainable businesses and projects by 2030. Wells Fargo is committed to supporting clients and communities as they transition to a net zero carbon economy.

Sundt Construction Inc. is constructing the solar facility, which will use Nextracker smart solar trackers. ECI of Billings, MT is providing the design for the substation and switchyard that will be built by its subsidiary, EPC Services Company. Tesla will supply and commission Megapacks for the facility, and New Mexico-based Affordable Solar Installation, Inc. will construct the battery energy storage system (BESS). In addition, SOLV Energy, Inc. and Tesla will provide ongoing operations and maintenance services to the facility once operational.

About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets, proudly serves one in three U.S. households and more than 10% of small businesses in the U.S., and is the leading middle market banking provider in the U.S. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 37 on Fortune's 2021 rankings of America's largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health, and a low-carbon economy. News, insights, and perspectives from Wells Fargo are also available at Wells Fargo Stories.

Additional information may be found at www.wellsfargo.com | Twitter: @WellsFargo.

About D. E. Shaw Renewable Investments
D. E. Shaw Renewable Investments (DESRI) and its affiliates develop, acquire, own, and operate long-term contracted renewable energy assets in the U.S. DESRI's portfolio of operating and in-construction renewable energy projects currently includes more than 50 solar and wind projects representing more than 6 GW of aggregate capacity. DESRI is a member of the D. E. Shaw group, a global investment and technology development firm with more than $60 billion in investment and committed capital as of September 1, 2021, and offices in North America, Europe, and Asia.

Please visitwww.desri.comfor more information about DESRI.

Contact Information
Media
Trina Shepherd, 312-339-0012
Wells Fargo
[email protected]

The D. E. Shaw Group
[email protected]