Arevon Energy Secures USD 258 Mn Financing for 200 MW Peregrine ESS in San Diego

Arevon’s innovative financing structures have set new standards for renewable energy projects. Peregrine Energy Storage Project marks Arevon’s seventh project to reach financial close in the past 15 months, totaling more than USD 3.2 billion of financings. For Peregrine, Arevon closed on a USD 179 million debt package, which will bridge to a preferred equity and tax credit transfer takeout.

Santander was the Administrative Agent and also acted as the Coordinating Lead Arranger, alongside CoBank, ACB. BNY served as the Security Agent. Latham & Watkins represented Arevon as the Borrower Counsel, and Norton Rose Fulbright served as the Lender Counsel.

Subsequently, Acadia Infrastructure Capital structured and sourced a USD 79 million preferred equity commitment to the Peregrine Energy Storage Project and effected the initial mechanical completion funding. Acadia and its Class A equity partner were advised by Amis, Patel & Brewer, LLP. Latham & Watkins represented Arevon as the Sponsor Counsel, and CRC-IB acted as sole financial advisor to Arevon.

“Peregrine builds upon the complex financings Arevon has closed in the last year, including Ratts 1 Solar and Heirloom Solar, which were the company’s first uncommitted tax equity and tax credit bridge transactions, and Condor Energy Storage, which was Arevon’s first executed deal to utilize a preferred equity investment with 100 percent of the tax credits transferred to two buyers,” said Denise Tait, Chief Investment Officer at Arevon. “We value our partners who trust in our innovative structures and support our continued efforts to develop more clean energy in California.”

Arevon developed, is constructing, and will operate the Peregrine Energy Storage Project, which represents a capital investment of almost USD 300 million and is expected to be online this year. When operational, Peregrine Energy Storage will enhance grid stability and will reduce the risk of brownouts and blackouts by storing electricity and providing it during high demand intervals or power outages. At the height of construction, the project employed more than 90 full-time equivalent personnel.

Peregrine will also disburse property tax payments estimated at more than USD 28 million over the life of the project, and once completed, will power up to 200,000 homes during peak electricity demand periods. Utility-scale energy storage systems reduce electricity costs by supporting the integration of more low-cost, homegrown renewable energy generation that is now the cheapest source of electricity.

“The advancement of our energy infrastructure relies on energy storage and its ability to strengthen grid reliability and energy security while lowering electricity costs with American-made generation sources,” said Kevin Smith, Chief Executive Officer at Arevon. “Arevon is pleased to announce Peregrine Energy Storage’s financial close, which adds to Arevon’s banner year of completed transactions in 2024, and we remain grateful for the continued collaboration and like-minded commitments from our financial partners.”

In addition to the bridge financing package, Arevon also closed on a land financing facility with HASI, a sustainable infrastructure investor. This financing allows Arevon to capture value from being the long-term owner of not only the project, but also the land on which it sits.