Arevon, headquartered in Scottsdale, Arizona, is one of the nation’s largest developers and owners of renewable energy assets, with more than 4.5 gigawatts of operational utility-scale solar, energy storage, solar-plus-storage and distributed generation assets across 17 U.S. states as well as more than six gigawatts in their development pipeline. Formed in 2021, Arevon has evolved into a leading independent power producer, consistently ranking in the top quartile of industry performance, long-term operations and maintenance. In the last 14 months alone, Arevon has completed project financings exceeding $3 billion, leading the charge in renewable energy development nationwide.
Eland 2, Arevon’s second phase of sister Eland 1 project, expands available renewable energy infrastructure in Kern County, California. The project involves the development of a 374-megawatt solar project coupled with a 150-megawatt battery energy storage system. By selling power under a 25-year busbar Power Purchase Agreement to the Southern California Public Power Authority, Arevon ensures a stable and long-term revenue stream while significantly contributing to California’s grid resiliency. The project features partnerships with leading construction, solar hardware and battery technology firms to provide a state-of-the art design. Arevon has leveraged its extensive experience to meet Kern County’s regulatory and safety requirements, including tough UL standards for fire safety and permitting, to advance the Eland 2 project.
Recognizing the potential and importance of the Eland 2 project, CoBank stepped in to provide critical financing, acting as Coordinating Lead Arranger in the $679 million Senior Secured Credit Facilities. The financing supports the construction and operations of the fully contracted solar and battery storage project. CoBank’s Project Finance Team, known for its strong renewables portfolio and leadership in the space, has been instrumental in driving these efforts forward.
A flagship project for Arevon, Eland 1 and 2 are collectively one of the nation’s largest solar-plus-storage installations, with total capital costs of more than $2 billion.
“Arevon has successfully secured $3 billion in project financings over the past year,” said Fahad Afolabi, Arevon’s Vice President of Project Finance. “CoBank has been a key financing partner that provided commitments across multiple projects that would power energy transition in the United States.”
The Eland 2 project’s solar energy will play a crucial role in achieving California’s ambitious renewable energy goals, particularly as the state phases out its coal-fired plants. The push for renewable energy development in California remains robust. As of 2024, California is on track to achieve 100% clean electricity, with 59% of the state’s electricity already coming from renewable and zero-carbon resources.
Arevon’s projects incorporate engineering solutions to solve the problem of solar intermittency, as photovoltaic resources can produce energy only when daylight is available. Arevon’s use of a battery energy storage system enables intentional releases of energy into the grid during high demand periods regardless of available sunlight.
“With on-site storage technology, we can holster energy throughout the day and then transmit it at night when there is greater load on the grid,” explains Afolabi. “Advanced grid integration techniques optimize energy distribution, reducing congestion and improving reliability.”
California’s ambitious goal necessitates a substantial increase in renewable energy generation over the next two decades. In 2024, non-fossil-fuel sources made up 61% of retail electricity sales in California, thanks to historic investments that have led to an extraordinary pace of development. The state has added more than 16,000 megawatts of new clean energy resources since 2020, including more than 10,000 megawatts in battery storage capacity, and has ordered 18,800 megawatts of more resources to come online by 2028.
Furthermore, Arevon has set its own net-zero target to reduce emissions in line with science-based pathways by 2040. Arevon is dedicated to implementing innovative and sustainable practices supporting water efficiency, biodiversity and circular economy improvements in its operations.
Examples include sheep grazing for vegetation management, planting native pollinator-friendly plants, using greywater to wash solar panels to conserve freshwater and recycling damaged equipment.
“The Eland 2 project is a testament to our ability to deliver large-scale renewable energy solutions that meet the needs of major utilities,” said Afolabi. “Our objectives highlight Arevon’s unwavering commitment to sustainable initiatives that will endure for years to come.” With CoBank’s support, the Eland 2 project is poised to make a significant impact on California’s renewable energy landscape, contributing to a cleaner, more sustainable future.