Independent power producer (IPP) Avantus has closed a US$525 million financing package for its Aratina 2 solar-plus-storage project in Southern California, US.
Currently under construction in eastern Kern County, the project will provide 184MW of solar PV and 452MWh of battery energy storage system (BESS) to the California grid and is expected to be operational by the end of the year.
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The financing package includes construction funding, a tax equity bridge loan and letters of credit and has been secured with financing firms BBVA Canadian Imperial Bank of Commerce and Santander.
Moreover, the company has already secured a 15-year power purchase agreement (PPA) for the Aratina 2 solar-plus-storage project with utility Southern California Edison.
The project represents the second phase of the Aratina Solar Center which combines a total of 350MW solar PV and 952MWh BESS. Both Aratina 1 and 2 are part of the company’s IPP strategy and will thus retain an ownership stake and operate the two solar-plus-storage projects.
“Aratina 2 is another demonstration of Avantus’ ability to develop and finance large-scale projects in one of the country’s most complex energy markets,” said Omar Karar, executive VP of capital markets and M&A at Avantus.
Backed by global investor KKR, which acquired a majority stake in Avantus in 2024, the California-based IPP is advancing a development portfolio across its core markets of California, Nevada and Arizona, which comprises 13GW solar PV and 44GWh BESS. The company forecasts it will reach its 5GW target of operational assets by 2030, with 788MW reaching commercial operation and 800MW under construction by the end of the year.
Amongst its solar PV portfolio of projects that completed construction this year is the 159MW Norton Solar Project in Texas. Japanese car marker Toyota Motor North America signed a virtual PPA for the entirety of the project’s output.
Financing of solar and energy storage projects will be at the centre of the Solar & Storage Summit USA event on 15-16 September in Garden Grove, California. The two day event will cover topics such as FEOC compliance, post-safe-harbour economics and the California market among others. For more information on the event, which is co-located with the Battery Asset Management USA event, can be found here.
