U.S. renewable energy developer Arevon Energy has closed a $920 million financing package for the Nighthawk Energy Storage Project, a 300 megawatt and 1,200 megawatt hour battery facility currently under construction in Poway, California. The project represents the company’s largest standalone energy storage development and forms part of a broader wave of grid infrastructure investment supporting the expansion of renewable energy across the United States.

The financing combines several capital sources, including debt, preferred equity and a tax credit transfer structure. The debt facility totals $482 million and was arranged by CIBC, with participation from ING Capital, NORD/LB, Santander and Zions Bancorporation. The financing package also includes a $169 million preferred equity investment from Goldman Sachs Alternatives and a $268 million tax credit transfer commitment with a corporate buyer.

 

Innovative Financing Structure for Energy Storage

 

Large-scale battery storage projects often require complex financing structures due to evolving policy incentives and long asset lifecycles. In the Nighthawk transaction, Arevon aligned multiple capital sources to optimize the monetization of tax credits available under U.S. clean energy policies while securing long-term investment.

The preferred equity investment enables the company to efficiently access federal tax incentives, while the tax credit transfer mechanism allows project credits to be sold directly to corporate buyers. This approach reflects new financing structures enabled by recent U.S. policy reforms designed to accelerate clean energy investment.

Developers and financial institutions increasingly rely on blended financing structures to fund large storage projects that support grid stability and renewable integration.

 

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Grid Reliability and Energy Storage Capacity

 

The Nighthawk Energy Storage Project will use lithium iron phosphate battery technology designed to provide flexible and reliable energy storage. Once operational, the facility will be capable of delivering power equivalent to the electricity needs of approximately 385,000 homes for up to four hours during peak demand periods.

The system will store electricity during periods of lower demand and release energy when consumption rises, helping stabilize electricity supply in the San Diego region. Under a long-term agreement, the project will provide resource adequacy capacity to Pacific Gas and Electric Company, supporting California’s grid reliability requirements.

Battery storage has become a critical component of the state’s energy strategy as renewable electricity generation from solar and wind continues to expand.

 

Economic and Community Impact

 

Construction of the Nighthawk project has created employment opportunities in the region, with more than 130 workers engaged during peak construction activity. The project is also expected to generate over $30 million in property tax payments during its operational life, supporting local public services such as schools and infrastructure.

Local economic activity associated with construction has also benefited nearby businesses including hospitality and retail sectors.

 

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Expanding Energy Storage Infrastructure

 

The Nighthawk project adds to Arevon’s growing portfolio of renewable energy assets across the United States. The company currently owns and operates more than six gigawatts of solar and energy storage projects across eighteen states, representing over $11 billion in capital investment.

Over the past two years, Arevon has completed $5.1 billion in project financings as it continues to expand its renewable infrastructure platform. The company also maintains a development pipeline of approximately seven gigawatts of additional projects.

As renewable generation increases, large-scale battery storage facilities such as Nighthawk are becoming essential components of electricity systems, helping balance supply and demand while supporting grid reliability during periods of peak consumption.