Arevon Energy has closed $1.1 billion in aggregate financing commitments for its Eland 2 solar+storage project in Kern County, Calif.
The 374 MW solar project, coupled with 150 MW of energy storage, is under early-stage construction and is anticipated to come online in 2025. Eland 2, combined with the project’s first phase, Eland 1, collectively represent one of the largest power plants in the company’s portfolio.
“The Eland 2 financing is an amazing accomplishment after Eland 1 which achieved financial close in 2022,” says Arevon’s Daniel Murphy. 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.”
Under a long-term PPA with Southern California Public Power Authority, Eland 2 will provide 200 MW AC of electricity to serve the power needs of Southern California. Solar generated by this project is enhanced by Tesla’s Megapack 2 XL battery system. San Diego-based SOLV Energy is the project’s EPC contractor.
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 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 represented Arevon as sponsor counsel. Milbank served as lender counsel and Sheppard Mullin served as tax equity counsel.
