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Aerial view of Eleven Mile Solar in Coolidge, Az. 

Photo: Van Applegate

Danish renewable energy developer Orsted won a $680 million investment from JPMorgan in two U.S. projects as incentives from the Biden Administration’s signature climate law — the Inflation Reduction Act (IRA) — spur a clean energy boom in the U.S.

JPMorgan will provide tax equity financing for Orsted’s Eleven Mile Solar Center, a 600-megawatt solar and storage project near Coolidge, Arizona, and the 250-megawatt Sparta Solar project in Mineral, Texas.

Eleven Mile Solar, which includes more than 857,000 solar panels and 2,000 batteries from domestic manufacturers First Solar and Fluence, respectively, as well as tracking systems from Nextracker, qualifies for a one-time investment tax credit for the storage system, as well as an annual credit from a production tax credit for the solar array. Both credits were extended under the IRA.

Clean energy projects have relied on tax equity partnerships for years. Put simply, large financial institutions provide part of the financing for a renewable energy project, in exchange for the project’s tax credits. Developers themselves rarely have high enough tax bills, so a partnership allows them to monetize their credits.

IRA Money Trail: D.C. drives clean energy boom

But the partnerships are complex and the markets are limited. Smaller developers don’t always have the means to enter into these partnerships, and the appetite from large financial institutions to take stakes in renewable energy projects is limited.

The IRA sought to change that by adding in a provision allowing the credits to be transferred to a third party, creating a new pool of potential capital from corporations looking to offset tax bills. The project developer can either sell the credits themselves, or the tax equity partner — in this case JPMorgan — can decide to sell the credits to another party.

Prior to the IRA, the tax equity market was between $18 billion and $20 billion per year, according to the American Council on Renewable Energy. That’s “[s]till far short of what is needed in the post-IRA clean energy investment landscape,” the investment bank Evercore ISI noted. The bank estimates the potential market for tax credit transfers hitting $47 billion in 2024, and rising to more than $100 billion annually by 2030.

Aerial view of Eleven Mile Solar in Coolidge, Az. 

Photo: Van Applegate

“This is the first time we’ve been able to do something like this…and it really opens the doors for a lot more corporates and companies with tax liability in the United States to come in and help support clean energy projects,” Melissa Peterson, head of onshore and origination at Orsted, told CNBC. “It’s really a unique structure that we hope to replicate over and over again.”

Construction at the $1 billion Eleven Mile Solar site began in January 2023 and, once operational later this year, it will be able to power roughly 65,000 homes. Two-thirds of the power will be used for a new Meta Platforms data center under construction nearby. Orsted is selling the power to Salt River Project — the local utility — who’s then selling it to Meta.

Boston Consulting Group estimates that between 2022 and 2030 data center electricity consumption will more than triple, requiring the same amount of power as 40 million households by the end of the decade. This comes on top of load growth from increased use of electricity, meaning U.S. power demand is now growing significantly for the first time in decades.

“We’ve been working in the United States for over 10 years, and this is probably the best time as a renewable energy developer to be working here in the U.S.,” said Orsted’s Peterson. “We see tons of opportunity with the increasing demand we’re seeing from reshoring manufacturing, big tech companies, paired with things like the Inflation Reduction Act, paired with lots of corporates who have ambitious climate targets.”

“We really see this as the pinnacle of opportunity for us,” she added.

– CNBC’s Harriet Taylor and Van Applegate contributed reporting.

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Watch Kia’s new EV4 hatch carve up the Nurburgring, nearly on two wheels [Video]

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Watch Kia's new EV4 hatch carve up the Nurburgring, nearly on two wheels [Video]

Kia’s upcoming entry-level EV has finally made its way to the famous Nurburgring for testing. The EV4 hatch was spotted ripping across the track, nearly on two wheels at one point, as Kia preps for its big debut.

According to Kia, the EV4 is “an entirely new type of EV sedan. ” It was first unveiled last October during Kia’s first annual EV Day, alongside the EV3 and EV5 as part of its new low-cost lineup.

The EV5 launched in China last year, while the EV3 is already rolling out in Korea and Europe. Next up, we will finally see the production version of the EV4.

Although its four-door format suggests it’s a sedan, Kia said the EV4’s bold design is a symbol of the company’s innovation. Its low nose, long-tail silhouette, and added roof spoiler give it an almost racecar-like feel.

With its official debut approaching, Kia’s EV4 has been spotted out in the wild several times. Last week, it was caught testing in the US for the first time.

A hatchback model has also been spotted. It was first caught on European roads this summer and in the US earlier this month.

Kia-EV4-Nurburgring
Kia EV4 (back) showcased alongside EV9 (left) EV3 (middle), and EV5 (right) (Source: Kia)

Kia EV4 hatch takes on the Nurburgring as debut looms

After the EV4 was spotted racing across the Nurburgring for the first time, we are getting our best look yet at the upcoming Kia model.

The video from CarSpyMedia shows the EV4 hatch carving up sections of the track. Several times, you can see the EV4 is being pushed to the limits, nearly going up on two wheels.

Kia EV4 hatch testing at Nurburgring (Source: CarSpyMedia)

However, with a low center of gravity and likely added stabilization tech, the EV4 appears to handle it with ease. You can also see the difference between the sedan model and the hatchback, with the bulky backside.

As it takes on the track, it almost looks like the 576 hp EV6 GT, Kia’s fastest and most powerful car. At least for now.

Kia-EV4-hatchback
Kia EV4 sedan concept (Source: Kia)

Kia is expected to officially reveal the EV4 by the end of the year, with deliveries starting in 2025. Prices are expected to be in the $30,000 to $40,000 range. The hatchback model is likely aimed at Europe, but it could also find a market in the US as buyers drift toward more efficient options.

Ahead of the LA Auto Show later this week, Kia is teasing five new vehicles for the US, at least one being an EV. Will it be the EV4? EV3?

Source: CarSpyMedia

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Elon Musk hints at Tesla making bigger electric cars, but don’t hold your breath

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Elon Musk hints at Tesla making bigger electric cars, but don't hold your breath

Elon Musk is hinting at Tesla making bigger electric cars, but you shouldn’t hold your breath as it’s not the first time he said that.

In the last few hours, Musk responded to two fans on X, asking Tesla to build bigger vehicles to support larger families.

Musk often promotes the idea of having bigger families as he is afraid of declining populations due to low birth rates in some countries.

With the first one, the CEO responded with a simple “OK,” and with the other, he elaborated a bit more by referencing the recently unveiled Tesla Robovan and “some other things”:

Musk appears to be hinting at Tesla’s work on a bigger electric vehicle that has yet to be unveiled.

While interesting, it’s hard to give too much weight to the comment, considering Musk claimed that Tesla has been working on a higher passenger capacity vehicle for years.

A “high passenger-density urban transport” vehicle has been in Tesla’s official product roadmap since 2016 and has yet to be unveiled, unless you count the Robovan unveiled last month, but that’s completely attached to Tesla’s self-driving effort as the vehicle has no steering wheel or pedals.

As part of Tesla’s shift toward autonomous driving, the automaker has pulled back plans for several new electric vehicle programs in favor of those without any driver inputs, like Cybercab and Robotvan.

Musk has also discussed the possibility of Tesla making an electric van on several occasions in the last few years.

Tesla is expected to soon unveil two new vehicles to be launch next year, but those are based on the Model 3 and Model Y and therefore, they aren’t likely to be bigger vehicles.

Electrek’s Take

Like most things Elon says lately, it goes in my “I’ll believe it when I see it” folder.

That said, I think an electric van that can be configured for cargo, camper, or passenger, would make a ton of sense in Tesla’s vehicle lineup.

Of course, it’s harder to get the greenlight for a vehicle program like that if your CEO is perpetually convinced that the company is on the verge of achieving self-driving and making steering wheels obsolete.

I’m more of the opinion that Tesla should have played it more careful and continue working on growing its human-driveable EV lineup while working on self-driving.

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Penske Truck Leasing kicks off a US rooftop solar rollout in Illinois

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Penske Truck Leasing kicks off a US rooftop solar rollout in Illinois

Penske Truck Leasing is rolling out rooftop solar on its US truck leasing, rental, and maintenance buildings, starting in Illinois.

Penske Truck Leasing, which offers an electric truck fleet leasing program, wants to cut emissions and save energy, so it’s activated its first rooftop solar system at its new facility in Channahon, Illinois (pictured). The 200 kW system is expected to generate about 80% of the building’s energy needs, and the rest will be supplied by the local utility.

The next Penske Truck Leasing rooftop solar system to come online will be in Grand Rapids, Michigan, “in the coming months,” followed by another in Linden, New Jersey, in 2025. All three of these new buildings are part of Penske’s LEED building program, which is designed to reduce energy use and promote sustainability.

Seven of Penske’s existing facilities in California will also get solar retrofits. These locations, which include Fresno, Hayward, La Mirada, National City, Riverside, San Diego, and San Leandro, are expected to generate about 600 kW of renewable energy in total.

Penske has teamed up with Sunrock Distributed Generation under a power purchase agreement to make the California upgrades happen. The company is also working with ForeFront Power, based in San Francisco, as its lead consultant for the solar rollout.

On average, these solar-powered Penske facilities will generate around 1 million kWh of renewable energy each year, preventing about 442 metric tons of CO2 emissions annually. That’s equivalent to the amount of energy needed to power nearly 90 homes for a year.

Drew Cullen, senior vice president of fuels and facility services at Penske, highlighted the significance of this move, noting:

Our solar program is an important piece of our renewable energy strategy, and ForeFront Power continues to be an outstanding partner in helping us bring these projects to fruition.

These investments will allow us to directly generate our own renewable energy to power our locations and continue to support our customers with sustainable solutions.

Penske Truck Leasing, part of Penske Transportation Solutions, is headquartered in Reading, Pennsylvania, and operates over 437,000 vehicles across North America, with nearly 1,000 maintenance facilities and more than 2,500 rental locations. Its investment in solar power is a key part of its broader sustainability strategy to cut emissions and reduce reliance on traditional energy sources.

Read more: Penske and Hitachi just launched a big electric truck charging pilot


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