Allianz linked with Bank of America Merrill Lynch to make tax equity investments in two wind farms in New Mexico, boasting a combined capacity of 300MW and developed by EDF Renewable Energy.
The Roosevelt (250MW) and Milo (49.65MW) projects are both already operating in Roosevelt County. Further details of the investment were not disclosed.
The insurer said the New Mexico deals are “a significant first step for us in the US market and, with the renewal of the PTC legislation, we hope to be making further investments in the near and medium term".
The five-year extensions agreed before Christmas for the PTC and investment tax credit (ITC) are expected to herald a major boost for the US wind and solar sectors, giving investors and developers a period of unprecedented stability.
Allianz has become a familiar backer of European renewable energy projects via its Allianz Capital Partners division, and said the US deal takes its total equity investments in the sector above $3bn.
The German group revealed before the Paris climate summit that it will stop backing businesses with significant exposure to the coal sector, putting it among a growing number of global investment giants to pivot away from fossil fuels.
Allianz CEO Oliver Bäte has said he hopes to increase the group's total investment in renewables to about €5bn ($5.6bn).
Bank of America Merrill Lynch is already a major investor in US renewables and said: "We believe the financial services sector is in a unique position to help and provide the much needed capital and financing to accelerate a low carbon economy.”
