Renewable energy developer-operator Arevon has completed a US$258 million financing for the 200MW/400MWh Peregrine battery energy storage system (BESS) in San Diego, California, US.
Marking Arevon’s seventh project to reach financial close in the past 15 months, the company closed on a US$179 million debt package for Peregrine, which will bridge to a preferred equity and tax credit transfer takeout. Santander was the Administrative Agent and acted as the Coordinating Lead Arranger, alongside CoBank, ACB. BNY served as the Security Agent.
Arevon, in collaboration with Tensaka, secured a 200MW California Independent System Operator (CAISO) interconnection agreement (Premium access) for the lithium-ion based BESS which will interconnect to the grid via IOU Southern California Edison’s Silvergate 230kV substation (queue no. 1670), Energy-Storage.news reported in June last year (Premium access).
Acadia Infrastructure Capital structured and sourced a $79 million preferred equity commitment to the Peregrine Energy Storage Project and effected the initial mechanical completion funding.
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The BESS is expected operational later this year. Arevon developed, is constructing and will operate the project. The company says the project employed more than 90 full-time equivalent personnel at the height of construction.
In addition to the financing package, Arecon closed on a land financing facility with sustainable infrastructure investor HASI, making the company the owner of the project and the land it is on.
Engineering, procurement, and construction (EPC) services are provided by Rosendin, which has provided EPC services for Arevon in the past. The BESS will use Tesla’s Megapack 2 XL energy storage solution.
In 2024, Arevon secured a deal for the offtake of its 1GWh Cormorant BESS in California with community choice aggregator (CCA) MCE shortly before securing financing for a solar-plus-storage project with a 600MWh BESS.
The company also started operations on its 200MW/800MWh Condor BESS project in San Bernadino County, California, in the same year.
In July of 2024, The Board of Supervisors (BoS) at California’s San Diego County, where the Peregrine BESS is located, voted unanimously to establish standards for the siting of battery storage facilities (Premium access article), following two fires at separate BESS facilities.
However, at the BoS September meeting, instead of enacting a moratorium, the board made a handful of small additions to the permitting process (Premium access article) that focused on the inclusion of technical studies prepared by a fire protection engineer for each BESS application.
Recently, the BoS of Orange County, California, enacted an emergency moratorium on the approval of any new BESS facilities (Premium access article) proposed for unincorporated areas of the county in order to protect the “health, safety and welfare” of its residents, following the fire at Moss Landing.
Denise Tait, Chief Investment Officer at Arevon said of the announced financing:
“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 utilise a preferred equity investment with 100 percent of the tax credits transferred to two buyers.”
“We value our partners who trust in our innovative structures and support our continued efforts to develop more clean energy in California.”
