May 23 (Reuters) - Danish company Orsted has

secured an investment of $680 million in tax equity financing

from J.P. Morgan for a portfolio of solar and storage

assets in Texas and Arizona, the clean energy developer said on

Thursday.

The tax equity allows for tax credit transferability under

2022 President Biden's Inflation Reduction Act, which corporate

buyers can purchase to support clean energy storage projects in

the U.S.

Additionally, the Biden administration is undertaking a

separate effort to identify areas in 11 western states best

suited for solar energy development, which it expects to

finalize by the end of the year.

European panel manufacturers are also looking to develop

projects outside of the EU, as they are weighed by competition

from China and the U.S. whose governments give more support to

their producers.

The investment will help fund the completion of its Arizona

project along with its 250 MW solar project in Texas, the

company said.

Orsted's 300 MW Arizona facility will receive a one-time

investment tax credit investment for its battery storage system,

which has become a priority technology amid rising renewable

energy capacity. Arizona's solar farm will generate production

tax credits for the next decade.

J.P Morgan, before this deal, had investments in 1.8 GW of

Orsted's 5.7 GW onshore portfolio in the United States.

The company expects commercial operations for both projects

to begin in 2024.

Utility-scale solar projects added a record 15 gigawatts

(GW) of capacity in 2023, up 60% from the year prior and marking

an all-time high, environmental research group Kayrros said in

February.