Arevon Energy has secured $1bn of financing for its Eland 2 solar-plus-storage project in Kern County in the US state of California.
Eland 2 features a 374 megawatts defined conditions (MWdc) solar array paired with a 150MW/600MWh energy storage system.
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The project, currently under early-stage construction, will be operational by Q1 2025.
Wells Fargo has committed $431m in tax equity financing to the project.
The developer has secured $654m in debt financing. This includes financial instruments such as a construction-to-term loan, a tax equity bridging loan and letter of credit facilities.
The Canadian Imperial Bank of Commerce has played a key role as the administrative agent and coordinating lead arranger.
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By GlobalDataThe financing consortium included BNP Paribas, CoBank, Commerzbank AG, the Commonwealth Bank of Australia and the National Bank of Canada as coordinating lead arrangers. JP Morgan took on the role of joint lead arranger, as well as collateral and depositary agent.
The second phase of the project’s solar energy output is bolstered by Tesla’s advanced Megapack 2 XL battery system.
SOLV Energy, based in San Diego, is responsible for the engineering, procurement and construction of the project.
The Eland 2 project, along with its first phase, Eland 1, is one of the largest power plants the company manages and a significant asset in its portfolio.
The combined phases of the Eland project will have a total output of 751MWdc of solar and 300MW/1.2 gigawatt-hours of energy storage capacity.
Under a long-term power purchase agreement with the Southern California Public Power Authority, Eland 2 will deliver 200 megawatt alternating current (MWac) of electricity, with the energy storage system extending the availability of power throughout the day.
Arevon CEO Kevin Smith said: “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.
“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.”
In September 2023, Arevon selected Bechtel to design and build a 190MWac solar project in Posey County, Indiana.
The clean energy produced will power 25,000 homes and will be supplied to CenterPoint Energy.
