California solar + storage project secures $1.1 billion in financing

Renewable energy project developer Arevon Energy has secured $1.1 billion in aggregate financing commitments for its Eland 2 Solar + Storage Project in Kern County, California. The 374-MW_DC solar project coupled with 150 MW/600 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.

“Solar + 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.”

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 + storage installations in the country with 751 MW_DC of solar electricity generation and 300 MW/1,200 MWh of energy storage.

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, utilizing energy storage to provide electricity over an extended period each day. The battery portion is supported by Tesla’s Megapack 2 XL battery system. SOLV Energy is the project’s engineering, procurement, and construction (EPC) contractor.

News item from Arevon