Arevon Vitality Inc. has closed financing on the Vikings solar-plus-storage undertaking with a mix of debt financing and tax credit score switch.
Arevon secured a dedication with J.P. Morgan to buy $191 million of funding tax credit and manufacturing tax credit, among the many nation’s first transactions introduced to this point that leverage the Inflation Discount Act’s transferability provision.
The extra $338 million debt facility was financed with MUFG, BNP Paribas, Sumitomo Mitsui Banking Corp., and First Residents Financial institution, who acted as coordinating lead arrangers. Nationwide Financial institution of Canada additionally participated as a lender. Stoel Rives represented Arevon as authorized counsel; Milbank LLP served as switch counsel; and Winston & Strawn LLP served as lender counsel.
“Vikings has been a landmark undertaking from its inception. It is likely one of the nation’s first photo voltaic peaker vegetation, and in the present day it is likely one of the first utility-scale solar-plus-storage ITC and PTC transferability transactions to shut because the Inflation Discount Act handed in August 2022,” says Kevin Smith, Arevon’s CEO.
Positioned in Imperial County, Calif., the Vikings energy plant incorporates a distinctive configuration of 157 MW DC of photo voltaic coupled with 150 MW/600 MWh of battery vitality storage. Vikings is contracted to offer useful resource adequacy and renewable vitality to San Diego Group Energy, serving to to help grid reliability starting subsequent yr.
The undertaking showcases key U.S. producers, with PV module provide from Arizona-based First Photo voltaic, together with photo voltaic trackers from Nextracker, whose headquarters are in Fremont, Calif. Tesla is supplying the power’s utility-scale batteries, which permit the photo voltaic vitality generated to be directed to the grid throughout peak demand.
Building of the power is effectively underway, with business operations scheduled for the third quarter of 2024. San Diego-headquartered SOLV Vitality is performing the development actions.
