Financial close achieved for 200-MW/800MWh Energy Storage Project in California

Arevon Energy, Inc., together with Blackstone Credit & Insurance announced a successful financial close of US$350 million in equity, debt, and transfer funding for the 200 megawatt/800 MWh Condor Energy Storage Project (Condor) currently under construction in Grand Terrace, California, USA.

Stoel Rives represented Arevon as sponsor transaction counsel and CRC-IB served as sponsor tax equity advisors. Milbank LLP served as the preferred equity counsel, and Winston & Strawn LLP served as lender counsel. Monarch Private Capital served as advisor to the tax credit purchaser, with Orrick, Herrington & Sutcliffe LLP as counsel to Monarch, and Paul Hastings served as counsel to the tax credit purchaser.

The Energy storage facility 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.

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.