Arevon Energy has secured $1.1 billion in aggregate financing commitments for its Eland 2 solar-plus-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 early next year.
“Solar-plus-storage projects, like our flagship Eland 1 and 2 facilities, play an important role in Arevon’s strategy” says Kevin Smith, CEO at Arevon. “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. 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.”
Under a long-term PPA with Southern California Public Power Authority, Eland 2 will provide 200 MW of electricity to serve Southern California’s power needs. The project utilizes 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. Sheppard Mullin served as tax equity counsel.
