Permanent Power Company has secured a $400m financing commitment and finalised a long-term power purchase agreement (PPA) following its recent launch as a national power platform in the US by CIM Group.
The newly formed company aims to support the development, acquisition and operation of power projects across the US. It will consolidate energy storage, solar generation, transmission infrastructure and projects in development under a single integrated platform.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
This consolidation is intended to improve operational efficiency and financing flexibility while laying the groundwork for national expansion.
The newly signed PPA covers the full capacity of solar and battery storage at the Grape project, amounting to 246MW of solar photovoltaic (PV) and 150MW/600MW-hours (MWh) of battery storage.
A regulated energy service provider with investment-grade credentials is serving as the counterparty. This contract secures revenue for Permanent Power Company from the project.
The company currently operates 652MW of solar PV systems and 360MW/1.44GW-hours (GWh) of battery energy storage systems (BESS), alongside 15 miles of transmission infrastructure in California. Its project pipeline includes Grape, which is under construction, and Daylight, which is construction-ready.
Together, these projects have a combined capacity of 550MW of solar PV and 330MW (1.32GWh) of battery storage.
Once complete, the portfolio will total around 1.2GW of solar PV and 690MW (2.76GWh) of BESS.
The Grape and Daylight projects are both located within Westlands Solar Park in California’s San Joaquin Valley. The Westlands Solar Park, which covers more than 20,000 acres, is one of the largest authorised solar parks in the US.
Permanent Power Company’s growth strategy also includes focusing on assets in qualified rural Opportunity Zones, as the company continues to identify and evaluate additional power generation and energy storage projects.
HPS Investment Partners, a division of BlackRock Private Financing Solutions, has committed the $400m in financing.
Permanent Power Company will use these resources to further the development of its Grape and Daylight projects and to pursue additional acquisitions. The company aims to serve commercial and institutional customers across the country.
CIM Group co-founder and principal Avi Shemesh said: “Permanent Power Company is a power platform focused on long-term growth and a stable energy supply, domestic power generation, energy storage and transmission.
“Securing this significant, long-term PPA with the regulated power division of a $200bn global energy supermajor underscores the momentum behind this platform and supports our ability to deliver power to our clients at significant scale.”
