Scottsdale solar company Arevon Energy Inc. secures $1 billion to build second phase of California generation-storage facility
Renewable energy company Arevon Energy Inc., which has the bulk of its operations in Scottsdale, has secured more than $1 billion in financing to proceed with a major solar project in Southern California that combines solar power generation and storage.
The aggregate financing comes through a tax equity commitment of $431 million from Wells Fargo Bank, along with $654 million in debt financing that includes a construction loan, a tax equity bridge loan and letter of credit facilities.
Those commitments will go toward the Eland 2 Solar-plus-Storage Project in California’s Kern County, which is already under early-stage construction, said the company, which develops, owns and operates its solar facilities. The 374 megawatt project with 150MW/600 megawatt hours of energy storage is expected to be up and running in the first quarter of 2025.
Eland 2 follows Eland 1, the first phase of the overall project, which will be one of the largest plants in Arevon’s portfolio and one of the largest solar-plus-storage installations in the country, providing 751 megawatts of power generation and 00 MW/1,200 megawatt hours of storage.
“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,” said Kevin Smith, Chief Executive Officer at Arevon, in a statement. “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.”
Tesla is general contractor for storage portion of project
The solar storage component of the project will use the Tesla Megapack 2 XL battery system to extend electricity provision longer during the day, and especially during periods of peak demand.
Tesla will be the general contractor for the storage portion, while Solv Energy will handle the solar portion, Arevon said, with about 300 people working on construction at the peak of the project. Once finished, the company said several full-time employees will operate and maintain the site during its decades-long lifespan.
Of the project’s output, 200 megawatts are dedicated to Southern California Public Power Authority through a long-term power purchase agreement.
“The Eland 2 financing is an amazing accomplishment after Eland 1 which achieved financial close in 2022,” said Daniel Murphy, Director of Project Finance at Arevon, in a statement. “Both projects are excellent examples of Arevon’s ability to execute on 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.”
Arevon lists offices both in Scottsdale and New York City, but the company’s director of communications, Blair Matocha, said the majority of its approximately 240 employees work out of its Scottsdale base.
Eland 2 will join more than 1,000 megawatts of projects that are currently being built by Arevon, with more than 6 gigawatts of projects in various stages of development, according to the company. It also has more than 1.9 megawatts in operation.
Canadian Imperial Bank of Commerce (CIBC) served as the administrative agent, coordinating lead arranger, green loan coordinator and bookrunner for the financing. 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.