New York-based investment firm Nuveen has closed a US$546 million preferred equity investment in SunZia, the largest renewable energy infrastructure project in US history.

The investment in the fully operational project was made through Nuveen Energy Infrastructure Credit ( EIC ), the firm's infrastructure credit investment platform. Nuveen has US$1.4 trillion in assets under management.

This is Nuveen EIC's largest preferred tax equity allocation to date and serves as the cornerstone for the platform's preferred investment strategy, which seeks to provide flexible, scalable capital to developers building the nation's most consequential energy infrastructure. In total, Nuveen EIC's commitments to SunZia, alongside those of its co-investors, have approached US$1.5 billion across four investments.

Milbank served as legal adviser to Nuveen EIC. Skadden, Arps, Slate, Meagher & Flom acted on behalf of Pattern Energy, the project developer.

SunZia comprises a 3,650-megawatt wind project and an 885-kilometre high-voltage direct current ( HVDC ) transmission line delivering low-cost energy from New Mexico to Arizona and to customers across the western grid.

The project generates and delivers more power than the Hoover Dam and, at full capacity, will deliver enough energy to power approximately one million American homes annually.

By pairing large-scale generation with interregional transmission, SunZia addresses one of the central challenges facing the energy sector: building not only energy generation but also the grid infrastructure needed to deliver that power across the country.

"SunZia represents exactly the kind of consequential infrastructure our platform was built to finance," says Don Dimitrievich, senior managing director and portfolio manager at Nuveen EIC. “This investment reflects our conviction that disciplined, flexible capital can help bring the nation's most ambitious energy projects to life at the speed and volume the current moment demands."

Nuveen EIC provides flexible financing structures, ranging from credit facilities and structured debt and equity solutions to preferred tax equity investments. The firm partners with management teams and equity sponsors to support project development, construction, and long-term asset ownership.