Arevon, Blackstone close $350 million financing for energy storage | Solar Financing Spotlight

Arevon solar financing

Arevon Energy and Blackstone have paired up for a 200 MW / 800 MWh energy storage project. Meanwhile, Aggreko and 38 Degrees have secured financing to acquire projects. All that and more in this installment of the Solar Financing Spotlight.

Renewable energy developer Arevon Energy Inc. and Blackstone Credit & Insurance (BXCI) have closed financing on the 200 MW / 800 MWh Condor Energy Storage Project, which is currently under construction in Grand Terrace, California.

The project is anticipated to start operations in Q2 2024 and is contracted under a 15-year agreement with Southern California Edison. The project will be capable of providing firming capacity, enhancing grid reliability and stability alongside increased adoption of renewable energy resources. Condor features Megapack 2 XL, Tesla’s utility-scale battery system. Tesla has been contracted to provide O&M services for the project. Rosendin Electric, Inc. is the project’s engineering, procurement, and construction (EPC) contractor. Arevon will own and operate the project on a long-term basis.

Blackstone’s preferred equity investment in Condor is structured to simplify the monetization of tax credits, eliminating the need for traditional tax equity financing.

“Arevon is a world-class renewable energy company, and we are excited to be their partner on the Condor financing,” said Zachary Rubenstein, managing director in the Blackstone Credit & Insurance Sustainable Resources Group. “Blackstone continues to see tremendous need for large scale financing solutions in the energy transition market, and we look forward to partnering with Arevon on future opportunities.”

The financing includes a commitment from Stifel Financial Corp. to buy investment tax credits and is supported with a $164 million debt facility which was secured with Coordinating Lead Arrangers CoBank ACB, Helaba, and Sumitomo Mitsui Banking Corp. The Bank of New York Mellon served as Collateral and Administrative Agent. Arevon secured real estate financing from climate investment firm HASI related to the Condor Energy Storage Project land.

“Condor represents not only our commitment to developing assets that deliver grid resilience but also our team’s adeptness in navigating complex, hybrid financing arrangements,” said Daniel Murphy, director of project finance at Arevon. “Along with our partners, we remain focused on pioneering climate finance solutions that promote a sustainable clean energy future.”

Aggreko acquires 13 MW Texas C&I solar project

Aggreko’s Energy Transition Solutions (ETS) division has acquired a 13 MW behind-the-meter solar power project site in Texas.

Aggreko ETS will oversee construction, own, and operate the clean energy project in support of a Texas energy producer’s drive to decarbonize operations. Once complete, the system will provide the customer with predictable cost savings and Scope 1 and 2 greenhouse gas emissions reductions under a long-term fixed-price power purchase agreement.

“Texas is an attractive market for these types of C&I projects, thanks to its robust solar resource, ease of development, and an efficient ERCOT grid connection process for projects of this size,” said Prashanth Prakash, Aggreko ETS chief commercial officer. “This project serves as another example of how we help commercial and industrial customers meet their decarbonization goals”.

This acquisition by Aggreko ETS reflects the organization’s deep industry network and proven credibility as domain experts known for reliable execution, strong experience, and an established presence in the rapidly growing ERCOT market.

The Texas acquisition follows several major announcements by Aggreko ETS growing its solar portfolio. In December, the division announced it had acquired nine community solar sites in upstate New York, and energized one so far. In May, Aggreko ETS became the strategic capital partner for Farmers Powering Communities, an organization developing community solar in agricultural areas.

38 Degrees North secures investment to acquire 62 MW of community solar in New York

Community solar and distributed renewables platform 38 Degrees North has closed on a growth equity investment from S2G Ventures. The company has also entered into an agreement to acquire community solar assets from Community Power Group (CPG) in New York.

Founded in 2015 and based in Sausalito, California, 38 Degrees North is an established platform focused on development-stage and construction-ready distributed generation and community solar projects. To date, the company has successfully aggregated, financed, constructed, and managed over 400 MW across over 100 projects through partnerships with high-quality institutional investor partners.

With the investment from S2G, 38 Degrees North looks to accelerate its growth by partnering with local communities, customers, and community and distributed solar and storage developers to deploy capital into assets across the development spectrum. Leveraging its project finance expertise, the 38 Degrees North team aims to support developers and projects through the remainder of development and into operations. As a long-term owner of projects, 38 Degrees North works with developers in an open fashion to design tailored capital solutions and establish clear visibility to portfolio value creation.

As part of the transaction, S2G’s Priyanka Duvvuru and Francis O’Sullivan will join 38 Degrees North’s board of directors.

With the CPG agreement, 38 Degrees North will acquire a portfolio of 10 community solar projects totaling 62 megawatts in New York state. This partnership represents the first acquisition funded in collaboration with S2G and establishes a scaled foundation for the community solar platform as the company comes to the market for tax equity and debt raises in 2024.

“We believe creative capital solutions for developer partners are critical to enable the deployment of community solar and distributed renewables assets across the U.S.,” said Ryan Bennett, managing director at 38 Degrees North. “S2G’s flexible growth capital will allow us to support projects across the development spectrum and be the partner of choice for developers and communities across the market.”

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