California solar project utilizes energy storage to meet peak electricity demand periods
NEW YORK and SCOTTSDALE, Ariz., Feb. 22, 2024 - Arevon Energy, Inc., a leading renewable energy developer, owner, and operator, today announced it has secured more than $1 billion in aggregate financing commitments for its Eland 2 Solar-plus-Storage Project in Kern County, California. The 374 megawatt (MWdc) solar project coupled with 150 MW/600 megawatt hours (MWh) of energy storage is under early-stage construction and is anticipated to come online in Q1 2025.
Wells Fargo provided a $431 million tax equity commitment. Arevon obtained $654 million of debt financing including a construction-to-term loan, a tax equity bridge loan, and letter of credit facilities. Canadian Imperial Bank of Commerce (CIBC) served as the Administrative Agent, Coordinating Lead Arranger, Green Loan Coordinator, and Bookrunner. Other Coordinating Lead Arrangers included BNP Paribas, CoBank, Commerzbank AG, Commonwealth Bank of Australia, and National Bank of Canada. J.P. Morgan served as Joint Lead Arranger, Collateral and Depositary Agent. Amis, Patel & Brewer, LLP represented Arevon as Sponsor Counsel; Milbank LLP served as Lender Counsel; and Sheppard Mullin served as Tax Equity Counsel.
Daniel Murphy, Director of Project Finance at Arevon, remarked: "The Eland 2 financing is an amazing accomplishment after Eland 1 which achieved financial close in 2022. Both projects are excellent examples of Arevon's ability to execute on large, complex transactions. I'm proud of our team's achievement and grateful to our valued partners as we continue to complete successful transactions in this increasingly intricate space."
"Following the successful financing of Eland 1, CIBC is proud to continue its support of Arevon as Bookrunner, Coordinating Lead Arranger, Green Loan Coordinator, and Administrative Agent on the financing of Eland 2," said Ines Serrao, MD and Head of US Renewables at CIBC. "As a leader in renewable energy projects in the U.S., partnering with companies like Arevon underscores our commitment to helping our clients achieve their sustainability ambitions."
Under a long-term power purchase agreement (PPA) with Southern California Public Power Authority, Eland 2 will provide 200 MWac of electricity to serve the power needs of Southern California, utilizing energy storage to provide electricity over an extended period each day. The solar energy generated by this project is enhanced by Tesla's Megapack 2 XL battery system, which ensure seamless power continuity and reliability particularly during peak-demand periods. San Diego-based SOLV Energy is the project's engineering, procurement, and construction (EPC) contractor.
Eland 2, combined with the project's first phase, Eland 1, collectively represent one of the largest power plants in Arevon's portfolio. When completed, they will be one of the largest operating solar-plus-storage installations in the country with 751 MWdc of solar electricity generation and 300 MW/1,200 MWh of energy storage.
"Solar-plus-storage projects – like our flagship Eland 1 and 2 facilities – play an important role in Arevon's strategy. Hybrid power plants deliver a more reliable, predictable energy yield during peak electricity demand periods, which in turn enables consistent returns across our diverse, multi-gigawatt portfolio," said Kevin Smith, Chief Executive Officer at Arevon. "The Eland projects highlight our team's financial strength, industry expertise, and thoughtful approach to fostering a sustainable energy infrastructure. We will continue to build upon this momentum, as leaders in powering the energy transition."
About Arevon
Arevon Energy, Inc. is a leading renewable energy company, supplying clean energy to utilities and corporations across North America. Headquartered in Scottsdale, Arizona, and New York City, Arevon uses innovative approaches and leading-edge technology to develop, build, finance, own, and operate clean energy projects. Arevon owns and operates more than 3,500 megawatts (MW) of solar, storage, and solar + storage hybrid assets across the country. The company is a renewable energy leader in California with more than 1,900 MW in operation and more than 1,000 MW in construction. Arevon has a robust portfolio of more than 6 gigawatts of projects in development which will enable the company to provide more clean, cost-effective energy to homes and businesses. Its financial strength, innovation, and industry expertise come together to improve the structure and performance of its platform of solar and energy storage power plants. Arevon was named one of Arizona's Top Workplaces in 2022 and 2023. For more information, please visit: www.arevonenergy.com.
SOURCE Arevon
