Tesla Megapack was selected to power a 150 MW/600 MWh battery energy storage system (BESS). Arevon Energy announced it has received 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, according to the press release. Arevon obtained $654 million of debt financing including a construction-to-term loan, a tax equity bridge loan, and a letter of credit facilities.
Daniel Murphy, Director of Project Finance at Arevon, remarked: “The Eland 2 financing is an amazing achievement 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.”
“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,” said Ines Serrao, MD and Head of US Renewables at CIBC. “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.”
Eland 2 will provide 200 MW AC to meet Southern California’s energy needs. To do this, it will use energy storage devices for an extended period every day. The solar energy generated by this project will be stored in the Tesla Megapack 2 XL battery system. BESS, powered by Megapack units, will ensure uninterrupted operation and reliability of power supply, especially during periods of peak load. San Diego-based SOLV Energy is the project’s engineering, procurement, and construction (EPC) contractor.
Eland 2, combined with the first phase of the Eland 1 project, 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 a capacity of 751 MW DC of solar power generation and 300 MW/1200 MWh of energy 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. “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.”
