Arevon Announces $258 Million of Financial Commitments for its Peregrine Energy Storage Project in California

The company reaches another major financial milestone and expands its standalone energy storage portfolio, contributing to California's renewable energy resources and grid resiliency

SCOTTSDALE, Ariz. and SAN DIEGO, Calif., Feb. 25, 2025 /PRNewswire/ -- Arevon Energy, Inc., a leading renewable energy developer, owner, and operator, has completed financing on a $258 million package for the company's 200 megawatt/400 megawatt-hour Peregrine Energy Storage Project located in the Barrio Logan community in San Diego, California.

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 $3.2 billion of financings. For Peregrine, Arevon closed on a $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 $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 $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 $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 leading 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.

Southern California Edison will purchase Peregrine's Resource Adequacy capacity under a long-term agreement to help support the state's reliability needs. Rosendin and EPC Services are the project's engineering, procurement, and construction contractors. Peregrine will feature Megapack 2 XL, Tesla's state-of-the-art, utility-scale battery energy storage system, which is the most advanced technology available on the market today and provides superior safety and protection for both the project and the surrounding community.

Arevon is a nationwide renewable energy developer and a leader in California with more than 3,000 MW in operation and more than 700 MW under construction in the state. The company recently issued other announcements celebrating achievements at several of its California projects, including the start of operations at its Eland 1 Solar-plus-Storage Project, its Vikings Solar-plus-Storage Project, and its Condor Energy Storage Project. Arevon also announced offtake agreements for its Cormorant Energy Storage Project and its Avocet Energy Storage Project and closed financing on its Eland 2 Solar-plus-Storage Project. Vikings Solar-plus-Storage was the recipient of IJGlobal's Renewables Deal of the Year – Energy Storage Award.

About Arevon
Arevon Energy, Inc. is a leading renewable energy company, supplying clean, reliable, and cost-effective energy to utilities and businesses across the United States. Headquartered in Scottsdale, Arizona, and with a regional office in New York City, Arevon's more than 300 mission-driven employees use innovative approaches and technology to develop, build, finance, own, and operate renewable energy projects. Arevon owns and operates more than 4,500 megawatts (MW) of utility-scale solar, energy storage, and solar-plus-storage projects as well as distributed generation assets in 17 U.S. states. The company is currently constructing more than 1,400 MW of new solar and storage capacity and has a robust development portfolio of more than 6 gigawatts. In the past 15 months, Arevon has completed project financings of more than $3.2 billion. For more information, visit arevonenergy.com.

SOURCE Arevon