Arevon Secures $920M Financing for California Battery Storage Project
Arevon Energy has closed a $920 million financing package to support the construction of its 300-megawatt / 1,200-megawatt-hour Nighthawk Energy Storage Project in Poway, California.
The financing includes a $482 million debt facility arranged by CIBC as left lead arranger, alongside lenders ING Capital, NORD/LB, Santander and Zions Bancorporation. The capital stack also features a $169 million preferred equity investment from Goldman Sachs Alternatives and a $268 million tax credit transfer commitment from a corporate purchaser.
“Strategically aligning debt, preferred equity, and transferability structures is essential to financing energy storage projects at this scale and profile,” said Denise Tait, CIO at Arevon. “This transaction demonstrates how innovative capital solutions can unlock long-term investment in critical grid infrastructure, even amid evolving market and policy conditions.”
Arevon will own and operate the project, which is expected to begin operations later this year. Once operational, Nighthawk will be capable of powering approximately 385,000 homes for up to four hours during peak demand, supporting grid reliability across California.
Under a long-term agreement, the project will provide resource adequacy capacity to Pacific Gas and Electric Company, helping support the state’s clean energy and reliability goals.
Over its lifespan, the project is expected to generate more than $30 million in property tax payments for the local community.
Scottsdale-based Arevon currently owns and operates more than 6 gigawatts of solar and energy storage assets across 18 states, representing more than $11 billion in capital investment, and is building an additional 600 megawatts of new capacity.
Arevon was represented by Latham & Watkins and Sheppard. Norton Rose Fulbright and Allen Matkins served as Counsel to the lenders. Milbank LLP and Allen Matkins acted as Counsel to Goldman Sachs, and CG/CRC-IB served as Arevon’s tax equity advisor.