Arevon Energy Inc. recently announced the successful closure of financing for the Vikings solar-plus-storage project. The project’s funding was achieved through a combination of debt financing and tax credit transfer, marking a significant milestone for the renewable energy industry.

As part of this financing endeavor, Arevon secured a commitment with J.P. Morgan to purchase approximately $191 million of investment tax credits and production tax credits. Notably, this is one of the first transactions to leverage the Inflation Reduction Act’s transferability provision, reinforcing the project’s innovation and forward-thinking approach.

In addition to tax credit transfer, Arevon obtained a debt facility of $338 million, which was financed with the support of esteemed institutions such as MUFG, BNP Paribas, Sumitomo Mitsui Banking Corp., and First Citizens Bank, serving as coordinating lead arrangers. National Bank of Canada also participated in lending support, demonstrating the strong financial backing behind the Vikings solar-plus-storage project.

Situated in Imperial County, California, the Vikings power plant boasts an exceptional configuration combining 157 MW DC of solar capacity with 150 MW/600 MWh of battery energy storage. This unique setup positions Vikings to provide resource adequacy and renewable energy to San Diego Community Power, consequently contributing to grid reliability, especially during peak demand periods.

A noteworthy aspect of the Vikings project is its collaboration with key U.S. manufacturers. The facility sources PV modules from Arizona-based First Solar, while solar trackers are provided by Nextracker, headquartered in Fremont, California. Tesla, a renowned name in the energy sector, is responsible for supplying the utility-scale batteries that enable the directed flow of the generated solar energy to the grid during peak demand.

With construction well underway, the Vikings solar-plus-storage project is scheduled to commence commercial operations in the third quarter of 2024. SOLV Energy, based in San Diego, is entrusted with the responsibility of executing the construction activities, holding expertise in delivering high-quality renewable energy projects.

The Vikings solar-plus-storage project’s successful financing represents a substantial achievement in advancing clean and sustainable energy solutions within the United States. By combining solar and storage capabilities, this innovative project contributes significantly to resource adequacy and renewable energy supply, making significant strides towards a greener future.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The energy market is highly volatile, and readers should conduct thorough research before making any investment decisions.