AES Corp. announced that a recently acquired subsidiary has closed on $154.2 million in debt financing for 400-MWh energy storage project in Los Angeles County.
sPower had closed on the funding for Luna Storage late last year. In January, AES merged with sPower and incorporated it into the AES clean energy business in the U.S.
“We are thrilled to help utility-scale storage take a significant step forward in the financing space with the Luna Storage deal,” said Brian Callaway, Vice President of Growth Initiatives for AES Clean Energy. “Efficiently accessing and moving the capital markets for both ourselves and our customers is core to our business. I am grateful for the collaboration and commitment of our financing partners in bringing this innovative financial solution to life, setting a precedent for the future of energy storage deals.”
The $154.2 million non-recourse debt raise, arranged by KeyBanc Capital Markets Inc., Credit Agricole Corporate and Investment Bank, Silicon Valley Bank, and Export Development Canada, is one of the largest financing deals for a utility-scale standalone battery storage project. An agreement with Clean Power Alliance (CPA) for Luna Storage was signed in April 2020, making this the largest ESA for a Community Choice Aggregation (CCA) in California.
“Storage is at the dawn of a generational opportunity to advance our society into the energy future – and leading the Luna Storage transaction with our partners at AES Clean Energy has helped to pave the way,” said Aaron Klein, a Managing Director in KeyBanc Capital Markets Utilities, Power and Renewables Group.
Luna Storage has a 15-year contract and is expected to come online later in 2021. Once online, Luna Storage will help CPA and the broader state of California achieve their progressive renewable energy commitments by improving the statewide grid reliability with fossil-free resources.
AES project director Ron Rodrique spoke on the future of digitalization in the power sector during a POWERGEN+ session. Click here to see that webcast or next week’s series on the Future Utility Workforce and O&M challenges