AES Corporation has closed a $154m non-recourse debt financing for a 400-megawatt hour standalone grid battery storage in California, US.
The transaction was closed by sPower, an independent power producer, which recently became as part of AES’ US business.
The Luna Storage project, located in the City of Lancaster, in Los Angeles County, is expected to come online later this year.
The 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.
A 15-year energy storage agreement (ESA) with Clean Power Alliance (CPA) for Luna Storage was signed in April 2020, making it the largest ESA for a community choice aggregation (CCA) energy retailer in California.
“Closing this landmark debt financing deal underscores the advancements of standalone battery storage technology to help us transition to a reliable, carbon-free grid,” said AES Clean Energy chief financial officer James Marshall.
“The Luna Storage project will enable Clean Power Alliance (CPA) to cost effectively integrate intermittent renewable energy resources into the grid, providing more reliability for their customers at a fixed price.”