sPower, Now Part of AES Clean Energy, Closes Landmark Debt Financing for a 400 MWh Standalone Battery Storage Project in California
The AES Corporation (NYSE: AES) announced the closure of $154.2 million in non-recourse debt financing for the Luna Storage project, a 400-megawatt hour lithium-ion battery storage initiative in Lancaster, California. This financing, one of the largest for standalone battery storage, was facilitated by KeyBanc Capital Markets and others. The project is set to help integrate renewable energy into the grid, ensuring greater reliability for Clean Power Alliance customers. The Luna Storage facility expects to start operations later in 2021.
- Closing of $154.2 million in non-recourse debt financing for Luna Storage.
- Luna Storage is one of the largest standalone battery storage financing deals.
- Aims to improve grid reliability and assist in California's renewable energy goals.
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ARLINGTON, Va., Feb. 8, 2021 /PRNewswire/ -- The AES Corporation (NYSE: AES) announced the closing of
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"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."
"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.
"Closing this landmark debt financing deal underscores the advancements of standalone battery storage technology to help us transition to a reliable, carbon-free grid," explained James Marshall, Chief Financial Officer for AES Clean Energy. "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."
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.
About AES
The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today. For more information, visit www.aes.com.
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