Clean energy provider Avantus said it has closed a more than $300 million financing package with Banco Bilbao Vizcaya Argentaria (BBVA) and the New York branch of Canadian Imperial Bank of Commerce for a kit solar and energy storage project in Penal County, Arizona. The installation, located in Eloy, has a solar power generation capacity of 100 MWac/130 MWdc, and an energy storage capacity of 400 MWh. Avantus said on March 4 that the financing package includes construction financing, a tax equity bridge loan, and letters of credit. The kite facility is currently under construction; It is expected to start commercial operations by the end of this year. “The financing demonstrates the continued bankability and commercial viability of utility-scale solar and storage projects in the region, and Avantus’ growing presence in Arizona,” said Avantus CEO Cliff Graham. “We are grateful for BBVA and CIBC’s partnership in bringing this critical infrastructure to Arizona at a time when the state is moving more stress on its electric grid.” “We are proud to support Avantus in delivering clean energy infrastructure at a critical moment for Arizona’s power system,” said Eugene Casozzi, managing director of the cleantech sector for BBVA. “This financing demonstrates BBVA’s ability to develop comprehensive capital solutions for complex, profitable scale solar and storage projects and to ensure orderly execution during construction. By partnering with Avantus on projects of this scale, BBVA continues its project finance expertise to support infrastructure that supports key US growth and electricity demand markets.” The project has a power purchase agreement with Arizona Public Utilities. Avantus said the 400-MWh battery storage system will support grid flexibility by storing solar energy during the day and dispatching it during evening peak demand hours. It will back up the grid during weather events, including the extreme heat that is common in Arizona. “We are pleased to support financing with Avantus on a project that reflects our shared commitment to developing reliable and sustainable infrastructure,” said Ines Sirao, US Project Finance and Infrastructure Managing Director and Co-Chair, Canadian Imperial Bank of Commerce. “These facilities will bring significant benefits to the local community, while strengthening grid reliability and meeting the region’s electricity demand.” RES is providing engineering, procurement, and construction services for the project. Fluence provides the technology and integration of its GridStack Pro battery energy storage system. White & Case LLP served as borrower counsel in the transaction, with Fenmore Craig, PC acting as local counsel. Akin Gump LLP served as counsel on the financial aspects, with Quarles & Brady LLP acting as local counsel. Avantus has one of the largest solar and energy storage pipelines in the United States, including approximately 24 GW of solar and 75 GWh of energy storage under development in the Western United States. —Daryl Proctor is a senior manager for Power.
