Project Finance Brief: Emeren Sells 3.8 GWh Battery Energy Storage Portfolio
Arevon Energy secures $529 million for Vikings solar and storage project
From: Mercom Capital Group
Emeren, a solar project developer, owner, and operator, announced the sale of a 410 MW energy storage portfolio comprising five battery energy storage projects in Italy to Matrix Renewables. The five projects consist of standalone storage systems with a cumulative capacity of 3,787 MWh. The entire portfolio is strategically located in the Italian southern region of Apulia. The Ready-To-Build status is expected to be achieved by late 2024.
Arevon Energy, a solar and storage project developer, closed the financing on the Vikings solar-plus-storage project with a combination of debt financing and tax credit transfer. The company secured a commitment with J.P. Morgan to purchase $191 million in investment tax credits and production tax credits leveraging the Inflation Reduction Act’s transferability provision. The Viking project is located in Imperial County, California, consisting of 157 MW of solar coupled with 150 MW/ 600 MWh of energy storage project. Arevon also secured an additional $338 million debt facility.
Soltec, a single-axis solar tracker firm, has secured €3.6 million (~$3.8 million) in project finance, with an additional €550,000 (~$589,520) from local communities to construct a 5.6 MW solar project in Spain. The financing includes senior debt financing combined with investment from local communities in the same project through a crowdfunding platform for constructing the Totana IV photovoltaic solar project.
Aypa Power, a Blackstone portfolio company that develops, owns, and operates utility-scale energy storage and hybrid renewable energy projects, secured $550 million in debt and tax equity financing for energy storage projects. The First Citizens Bank & Trust Company, Nomura Securities International, National Bank of Canada, and MUFG Bank served as lenders, and U.S. Bancorp Impact Finance as the portfolio’s tax equity investor.
esVolta, LP, a developer, owner, and operator of utility-scale energy storage projects in North America, announced that it has closed a tax equity investment with U.S. Bancorp Impact Finance, a subsidiary of U.S. Bank, to finance its Santa Paula Energy Storage project. The new tax equity financing will support the completion of a 30 MW / 60 MWh battery project currently under construction about 60 miles northwest of Los Angeles.
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Read last week’s project finance brief.