Arevon is proud to have successfully closed this landmark financing transaction. This funding will allow its ambitious energy storage project to move forward, a key effort to increase grid reliability across California. Over that same period, the company has locked up a stunning amount of project financing—all $5.1 billion worth. This accomplishment further cements its status as a leader in the renewable energy field. Considering that the new project is expected to create more than $30 million in property-tax contributions over its period of operations, the complaints may be misplaced.
The unique financing structure includes a $169 million preferred equity investment formed with Goldman Sachs Alternatives. In addition, it features a big $268 million tax credit transfer commitment from some mysterious corporate purchaser. Arevon has secured a $482 million debt facility, with CIBC as the left lead arranger. Other lenders in the bond anticipation note facility include ING Capital, NORD/LB, Santander and Zions Bancorporation.
Arevon’s facility will be able to provide enough clean, renewable electricity to power more than 385,000 homes. It will limit this to four hours during times of peak demand. This project supports California’s clean energy and grid reliability goals by proving out new technology to seamlessly integrate distributed energy resources with the grid. Arevon includes a long-term contracted portfolio, highlighted by a contract with Pacific Gas and Electric Company (PG&E). Once in service, this project will play a critical role in bolstering the region’s resource adequacy capacity.
The project is expected to come online later this year. It’s already had a big impact on the regional economy. At the height of its construction activity, Arevon had more than 130 workers on-site. This impressive workforce is a testament to Arevon’s leadership in renewable job creation, sustainability, and clean energy development.
Innovative financing will play a crucial role in the new market paradigm, said Denise Tait, Arevon’s chief investment officer.
“This transaction demonstrates how innovative capital solutions can unlock long-term investment in critical grid infrastructure, even amid evolving market and policy conditions. It reflects the strength of our financial partnerships and Arevon’s commitment to delivering durable, long-term value.” – Denise Tait, Arevon chief investment officer
Arevon’s tax equity advisor on this project is CG/CRC-IB, making this project even more appealing strategically and financially. The company’s proactive measures not only ensure the project’s success but contribute positively to California’s energy landscape.