Arevon Energy, Inc., a prominent developer, owner, and operator of renewable energy, has announced the successful securing of over $1 billion in financing commitments for its Eland 2 Solar-plus-Storage Project in Kern County, California. This project combines a 374-megawatt (MWdc) solar installation with 150 MW/600 megawatt-hours (MWh) of energy storage and is currently undergoing early-stage construction, with plans to be operational in the first quarter of 2025.
The financing includes a $431 million tax equity commitment from Wells Fargo and $654 million in debt financing, comprising a construction-to-term loan, a tax equity bridge loan, and letter of credit facilities. Canadian Imperial Bank of Commerce (CIBC) led the financing 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 also participated as Joint Lead Arranger, Collateral, and Depositary Agent. Legal representation for Arevon was provided by Amis, Patel & Brewer, LLP as Sponsor Counsel, Milbank LLP as Lender Counsel, and Sheppard Mullin as Tax Equity Counsel.
Daniel Murphy, Arevon’s Director of Project Finance, expressed pride in the accomplishment, citing the successful closure of Eland 1 in 2022 and the team’s ability to execute large, complex transactions.
Ines Serrao, MD and Head of US Renewables at CIBC, reaffirmed the bank’s commitment to supporting Arevon, praising their leadership in renewable energy projects.
Under a long-term power purchase agreement (PPA) with Southern California Public Power Authority, Eland 2 will supply 200 MWac of electricity to Southern California, utilizing energy storage to ensure reliability during peak-demand periods. The project will utilize Tesla’s Megapack 2 XL battery system for enhanced power continuity. SOLV Energy, based in San Diego, will serve as the project’s engineering, procurement, and construction (EPC) contractor.
Eland 2, in conjunction with the first phase, Eland 1, represents one of the largest power plants in Arevon’s portfolio. Upon completion, they will constitute one of the largest solar-plus-storage installations in the United States, with 751 MWdc of solar generation and 300 MW/1,200 MWh of energy storage.
Kevin Smith, CEO of Arevon, emphasized the significance of solar-plus-storage projects in their strategy, highlighting their ability to provide reliable energy during peak demand periods and deliver consistent returns across their portfolio. He underscored the projects as a testament to Arevon’s financial strength, industry expertise, and commitment to sustainable energy infrastructure.
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