Arevon Secures $1.1 Billion Funding For California Solar And Storage Project

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US-headquartered renewable energy developer Arevon Energy has announced that it has secured more than $1 billion in aggregate financing commitments for its Eland 2 Solar-plus-Storage Project in Kern County, California. The 374 megawatts (MWdc) solar project coupled with 150 MW/600-megawatt hours (MWh) of energy storage is under early-stage construction and is anticipated to come online in Q1 2025, according to a press release by the company.

According to the company, 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 a 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, remarked, “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 large, complex transactions. I’m proud of our team’s achievement and grateful to our valued partners as we continue to complete successful transactions in this increasingly intricate space.”

Under a long-term power purchase agreement (PPA) with Southern California Public Power Authority, Eland 2 will provide 200 MWac of electricity to serve the power needs of Southern California. The solar energy generated by this project is enhanced by Tesla’s Megapack 2 XL battery system. San Diego-based SOLV Energy is the project’s engineering, procurement, and construction (EPC) contractor, according to the press document by Arevon.

Eland 2, combined with the project’s first phase, Eland 1, collectively represents one of the largest power plants in Arevon’s portfolio. So far, Arevon has operated more than 3,500 megawatts (MW) of solar, storage, and solar + storage hybrid assets across the US.