Arevon Energy said it received a $400 million loan to support the buildout of a 6 GW solar and energy storage project portfolio in the Midwest, Southeast, and California. Funds were provided by Canadian Imperial Bank of Commerce and KeyBank N.A. The funding coincides with the one-year anniversary of Arevon’s launch.
The two-year facility has an innovative hybrid borrowing base, consisting of uncalled capital with an additional net asset value component. Stoel Rives represented Arevon as legal counsel and Mayer Brown served as lender counsel.
“The scale of this capital reaffirms Arevon’s place in the finance community as one of the fastest-growing renewable independent power producers in the country,” said Brian Callaway, chief financial officer, Arevon. “Complex financial engineering and access to facilities like this are a key part of our competitive advantage.”
Arevon has 6 GW of renewable energy projects under development or in operation, and 1 GW of storage capacity. The company performs commercial, financial, performance asset management, and construction services.
Earlier this year, the company sold a 540 MW solar development portfolio to Sol Systems. The portfolio consists of three 180 MW projects in southeast Illinois.
“This sale is a continuation of the partnership between Sol Systems and Arevon, which began with our joint venture, Sol Customer Solutions, providing distributed generation solutions to commercial customers.” said Justin Johnson, Arevon’s chief operating officer.
Arevon is also constructing a 300 MW energy storage project in San Diego County, California. Pending permitting approvals, the project in Poway is expected to break ground in 2023. The installation will use the Tesla Megapack.
The company signed a long-term contract under which the Nighthawk storage facility will provide energy and resource adequacy services to Pacific Gas and Electric Company (PG&E). The project was selected in a competitive request for offers PG&E launched to comply with a June 2021 California Public Utilities Commission order directing load-serving entities like PG&E to procure additional energy resources. The Nighthawk project will connect to the grid at the Sycamore Canyon Substation, which receives renewable energy generated in the desert and distributes it to the San Diego area.
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