US-based clean energy company Avantus has completed a financing round worth over $525m for the construction of the Aratina 2 solar and battery storage project in eastern Kern County, California.
The package was arranged with CIBC, BBVA and Santander, and comprises construction funding, a tax equity bridge loan and letters of credit.
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Aratina 2 is expected to begin operations by the end of 2026.
Once operational, Aratina 2 is set to provide 150MW alternating current (MWac) of solar power generation and 452MW-hours (MWh) of battery storage to the California energy grid.
The project is currently under construction and has entered into 15-year power purchase agreements (PPA) with Southern California Edison.
Avantus Capital Markets and M&A executive vice-president Omar Karar said: “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.
“BBVA, CIBC and Santander’s participation reflects genuine confidence in our track record and our long-term strategy as an owner-operator.”
BBVA North America Project and Infrastructure Finance head Eugene Kasozi said: “Aratina 2 is a strong example of the high-quality infrastructure projects needed to support the evolving energy landscape in the US.
“We are proud to partner with Avantus on this financing and to leverage BBVA’s project finance expertise to help deliver resilient, long-term energy solutions.”
The development is forecast to create around 300 union construction jobs, generate tax revenue for Kern County’s public services, and provide permanent operations and maintenance positions throughout its lifespan.
Aratina 2 represents the second phase of the Aratina Solar Center, which will have a combined capacity of 350MW of solar and 952MWh of storage across both phases.
Avantus intends to retain ownership and manage both Aratina 1 and 2 under its independent power producer strategy.
White & Case served as legal counsel for the transaction, with additional support from Cox Castle & Nicholson. Akin Gump Strauss Hauer & Feld and Holland & Knight advised the financing parties.
With a pipeline totalling 13GW of solar and 44GWh of storage across California, Arizona and Nevada, Avantus plans to bring 5GW of system capacity online by 2030.
By the end of this year, the company expects to have 788MW in commercial operation and 800MW under construction.
