AES closes US$2 billion in finance for gas plus energy storage project

By John Parnell
July 5, 2017
LinkedIn
Twitter
Reddit
Facebook
Email
Batteries as part of an AES ‘Advancion’-branded utility-scale installation. Image credit: AES

AES Corporation has closed US$2 billion in finance for the 1.4GW Southland Repowering Project.

The install in southern California encompasses 1,284MW of combined cycle gas capacity and 100MW of battery storage.

The remaining US$350 million will be contributed as equity by AES. The company won a competitive tender in 2014 for a 20-year power purchase agreement (PPA) with utility firm Southern California Edison (SCE).

“The US$2.3 billion Southland repowering project is a key component of our strategic objective of increasing our US Dollar-based, long-term contracted position,” said Andrés Gluski, AES President and CEO. “This project will provide Californians with clean and reliable energy by integrating 1,284MW of efficient combined cycle natural gas generation with 100MW of advanced battery-based energy storage.”

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

The gas element of the project will be in commercial operation in 2020 with the storage following in 2021.

According to AES it is the largest non-recourse financing for a project incorporating battery storage.

15 September 2026
San Diego, USA
You can expect to meet and network with all the key industry players again in 2025 from major US asset owners, operators, RTOs and ISOs, optimizers, software and analytics providers, technical consultancies, O&M technology providers and more.

Read Next

March 25, 2026
AU$2bn deal secures Boyne smelter to 2040+ with 600MW+ battery storage firming renewables for Rio Tinto’s aluminium production in Queensland.
March 24, 2026
Arevon, Banpu Power (BPP) and Energy Vault have made BESS project announcements totalling 1,550MWh of capacity in the US.
March 24, 2026
The legislative body of Nebraska, US, has advanced a bill to clarify and expand the state’s use of battery energy storage systems (BESS).
March 23, 2026
Thimo Mueller, general manager of commercial at ASL, has urged that a ‘culture of collaboration’ will be key to New South Wales (NSW) achieving its energy storage targets.
March 23, 2026
The New Jersey Board of Public Utilities (NJBPU) has selected developer and IPP Elevate Renewables’ 600MWh battery energy storage system (BESS) for development in Ridgefield, New Jersey, US.