The project aims to enhance grid stability by storing electricity for use during peak demand or outages.
Arevon Energy has finalized a $258 million financing package for its Peregrine energy storage project in San Diego, California. The facility, with a capacity of 200 MW/400 MWh, marks the company’s seventh financial close since December 2023, contributing to over $3.2 billion in total financings during that period.
The Peregrine funding comprises a $179 million debt package, set to shift into preferred equity and tax credit transfers later. Santander acted as the administrative agent and coordinating lead arranger, joined by CoBank, ACB, and BNY, which served as the security agent. Latham & Watkins provided legal counsel to Arevon, while Norton Rose Fulbright advised the lenders. Acadia Infrastructure Capital arranged a $79 million preferred equity commitment to support initial construction, with Amis, Patel & Brewer guiding Acadia and its equity partner, and Latham & Watkins, alongside CRC-IB, assisting Arevon as sponsor counsel and financial advisor.
A land financing deal with HASI was also secured, enabling Arevon to retain long-term ownership of the project and its site. Chief Investment Officer Denise Tait said: “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 utilise a preferred equity investment with 100 percent of the tax credits transferred to two buyers.” She emphasized the role of partners in supporting the company’s efforts to expand clean energy in California.
The Peregrine project, valued at $300 million, is slated to begin operations in 2025. It aims to bolster grid reliability by storing power for peak demand or outages, helping prevent power shortages. The facility will employ Tesla’s Megapack 2 XL, a large-scale battery system recognized for its efficiency and safety. During peak construction, it will sustain 90 full-time equivalent jobs and contribute over $28 million in property taxes over its lifetime, capable of powering up to 200,000 homes during high-demand periods.
Southern California Edison has entered a long-term agreement to procure Peregrine’s resource adequacy capacity, supporting the region’s energy needs. Rosendin and EPC Services are handling engineering, procurement, and construction duties. CEO Kevin Smith stated: “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.” He noted that Peregrine’s financial close adds to Arevon’s strong performance in 2024, crediting the collaboration with financial partners.
The project underscores Arevon’s focus on enhancing energy infrastructure in California, aligning with broader goals of stability and sustainability in the power sector.
