Arevon Energy secures $1bn financing for US solar-plus-storage project

February 23, 2024

Arevon Energy has secured more than $1 billion in aggregate financing commitments for its Eland 2 Solar-plus-Storage Project in Kern County, California.

The 374MWdc solar project coupled with 150MW/ 600MWh 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, while Arevon also secured $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, said: “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.”

Ines Serrao, MD and head of US renewables at CIBC, added: “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 with Southern California Public Power Authority, Eland 2 will provide 200 MWac of electricity to serve the power needs of Southern California, utilising 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 contractor.

“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, CEO 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.”