AES secures $2bn financing for Southland repowering project in California
AES has secured $2bn non-recourse financing for its 1,384MW Southland repowering project in Southern California, US.
The project comprises 1,284MW of combined cycle gas-fired generation and 100MW of battery-based energy storage.
AES' president and chief executive officer (CEO) Andrés Gluski said: “The $2.3bn Southland repowering project is a key component of our strategic objective of increasing our US Dollar-based, long-term contracted position.
“This project will provide Californians with clean and reliable energy by integrating 1,284MW of efficient combined-cycle natural gas generation with 100MW of advanced battery-based energy storage.”
In 2014, Southern California Edison (SCE) awarded 20-year power purchase agreements (PPA) to AES for the project through a competitive bidding process. Under the PPAs, SCE will purchase the total power generated by the project from AES. The fee will cover AES' fixed operating costs, debt service, and return on capital for the Southland repowering project.
Kiewit Power Constructors will build the gas-fired power plant under a turnkey engineering, procurement, and construction (EPC) contract. Construction has already started at AES’ Huntington Beach site and it is expected to be initiated at its Alamitos site in early July 2017.
The gas-fired facility is expected to begin commercial operations in 2020, with plans to begin operations in 2021.