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Distributed Energy Resources

Financing Commitments are Secured for Solar-Plus-Storage Project That has PPA With SCPPA

Arevon Energy Inc. on Feb. 21 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-megawatt solar project coupled with 150 MW/600 megawatt hours of energy storage is under early-stage construction and is anticipated to come online in Q1 2025.

Under a long-term power purchase agreement 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.

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,” Arevon Energy said.

San Diego-based SOLV Energy is the project’s engineering, procurement, and construction contractor.

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 letter of credit facilities.

Canadian Imperial Bank of Commerce 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.

Eland 2, combined with the project’s first phase, Eland 1, collectively represent one of the largest power plants in Arevon’s portfolio.