Arevon Secures $920 Million for 1.2 GWh California Storage Project
Event summary
- Arevon secured $920 million in financing for its 300 MW / 1,200 MWh Nighthawk Energy Storage Project in Poway, California.
- The financing package includes $482 million in debt, $169 million in preferred equity from Goldman Sachs Alternatives, and $268 million in tax credit transfers.
- The project, expected to be operational this year, will power approximately 385,000 homes for up to four hours during peak demand.
- Arevon has closed $5.1 billion in project financings over the past two years, demonstrating a strong capital access track record.
The big picture
This financing underscores the growing institutional investor interest in energy storage as a critical component of grid modernization and the energy transition. The scale of the Nighthawk project ($920 million) and the diverse financing sources demonstrate the increasing maturity of the energy storage investment market. Arevon’s ability to secure this capital, alongside its $5.1 billion in recent project financings, positions it as a key player in the expanding US energy storage landscape.
What we're watching
- Capital Structure
- The blended financing approach (debt, preferred equity, tax credit transfers) suggests a complex risk profile and may become a standard for large-scale storage projects, impacting financing costs and timelines.
- Tax Credit Dynamics
- The reliance on tax credit transfers highlights the ongoing importance of government incentives for energy storage deployment and the potential volatility of their availability.
- Grid Integration
- The project’s long-term agreement with PG&E indicates increasing demand for grid-stabilizing energy storage, but also exposes Arevon to potential regulatory or operational changes within the utility.
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