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.
Daniel Murphy, Director of Project Finance at Arevon, remarked, “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.”
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.
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 represent 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.
“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.”
