Arevon Energy, a developer of renewable energy projects, has announced the procurement of over $1 billion in aggregate financing commitments for its Eland 2 Solar-plus-Storage Project in Kern County, California.
The project, consisting of a 374 MWdc solar installation coupled with 150 MW/600 MWh of energy storage, is currently in the early stages of construction and is slated to commence operations in the first quarter of 2025.
Wells Fargo has provided a tax equity commitment of $431 million, while Arevon has secured $654 million in debt financing, encompassing a construction-to-term loan, a tax equity bridge loan, and letter of credit facilities.
Canadian Imperial Bank of Commerce (CIBC) played a pivotal role as the Administrative Agent, Coordinating Lead Arranger, Green Loan Coordinator, and Bookrunner, with additional Coordinating Lead Arrangers including BNP Paribas, CoBank, Commerzbank AG, Commonwealth Bank of Australia, and National Bank of Canada.
JP Morgan served as Joint Lead Arranger, Collateral and Depositary Agent. Legal representation was provided by Amis, Patel & Brewer as Sponsor Counsel, Milbank as Lender Counsel, and Sheppard Mullin as Tax Equity Counsel.
Daniel Murphy, Director of Project Finance at Arevon, expressed pride in the team’s accomplishment, highlighting Eland 2’s financing as a testament to Arevon’s capability to execute large, complex transactions.
Ines Serrao, MD and Head of US Renewables at CIBC, echoed sentiments of support, emphasizing CIBC’s commitment to facilitating sustainability initiatives by partnering with industry leaders like Arevon. As the Bookrunner, Coordinating Lead Arranger, Green Loan Coordinator, and Administrative Agent for Eland 2, CIBC continues its partnership with Arevon following the successful financing of Eland 1.
Under a long-term power purchase agreement (PPA) with Southern California Public Power Authority, Eland 2 will supply 200 MWac of electricity to meet the power demands of Southern California, leveraging energy storage to ensure continuous electricity supply throughout the day.
Tesla’s Megapack 2 XL battery system enhances the solar energy generation, ensuring reliability and continuity, especially during peak-demand periods. SOLV Energy, based in San Diego, serves as the project’s engineering, procurement, and construction (EPC) contractor.
Eland 2, alongside its predecessor Eland 1, represents a significant addition to Arevon’s portfolio, collectively forming one of the largest solar-plus-storage installations in the country upon completion, with a combined capacity of 751 MWdc of solar electricity generation and 300 MW/1,200 MWh of energy storage.