Arevon Energy – a leading renewable energy developer, owner, and operator – announced 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-megawatt (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.
Wells Fargo provided a $431 million tax equity commitment, and Arevon obtained $654 million of debt financing, including a construction-to-term loan, a tax equity bridge loan, and a letter of credit facilities.
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, utilizing energy storage to provide electricity over an extended period each day. And the solar energy generated by this project is enhanced by Tesla’s Megapack 2 XL battery system, which ensure seamless power continuity and reliability particularly during peak-demand periods. San Diego-based SOLV Energy is the project’s engineering, procurement, and construction (EPC) contractor.
Eland 2, combined with the project’s first phase, Eland 1, collectively represents one of the largest power plants in Arevon’s portfolio. When completed, they will be one of the largest operating solar-plus-storage installations in the country with 751 MWdc of solar electricity generation and 300 MW/1,200 MWh of energy storage.
Canadian Imperial Bank of Commerce (CIBC) served as the Administrative Agent, Coordinating Lead Arranger, Green Loan Coordinator, and Bookrunner. And 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.
KEY QUOTES:
“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 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.”
- Daniel Murphy, Director of Project Finance at Arevon
“Following the successful financing of Eland 1, CIBC is proud to continue its support of Arevon as Bookrunner, Coordinating Lead Arranger, Green Loan Coordinator, and Administrative Agent on the financing of Eland 2. As a leader in renewable energy projects in the U.S., partnering with companies like Arevon underscores our commitment to helping our clients achieve their sustainability ambitions.”
- Ines Serrao, MD and Head of US Renewables at CIBC
“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.”
- Kevin Smith, Chief Executive Officer at Arevon
