French Firms Innovate: Trading Tax Credits for Clean Power

Feb 21, 2024 11:15 AM ET

  • Schneider Electric and Engie North America team up to boost clean power projects in Texas using innovative financing strategy. Accelerating the energy transition in the US!
French Firms Innovate: Trading Tax Credits for Clean Power

French energy companies Schneider Electric SE and Engie North America are utilizing a rule in the US Inflation Reduction Act to boost clean power projects. Schneider will pay $80 million to acquire tax credits, which will help fund four Engie projects in Texas. The tax savings will then be used to purchase renewable energy credits from Engie over 10 years.

This innovative financing arrangement allows Schneider to support renewable projects without taking an ownership stake, potentially attracting a wider pool of investors. Engie believes that this approach will accelerate the energy transition in the United States by facilitating the construction of more clean energy projects and increasing renewable energy on the grid.

How are Schneider Electric and Engie North America boosting clean power projects in the US?

  • Schneider Electric SE and Engie North America are utilizing a rule in the US Inflation Reduction Act to boost clean power projects in the US.
  • Schneider Electric will pay $80 million to acquire tax credits, which will help fund four Engie projects in Texas.
  • The tax savings will then be used to purchase renewable energy credits from Engie over 10 years.
  • This innovative financing arrangement allows Schneider to support renewable projects without taking an ownership stake, potentially attracting a wider pool of investors.
  • Engie believes that this approach will accelerate the energy transition in the United States by facilitating the construction of more clean energy projects and increasing renewable energy on the grid.

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