AES Corporation closes on deal to finance Luna Storage project in California
The AES Corporation closed on a deal to finance Luna Storage, a 400-megawatt hour standalone lithium-ion battery storage project in Lancaster, Calif. in Los Angeles County.
The transaction was closed by sPower, an Independent Power Producer (IPP), which merged to become part of AES’ clean energy business in January.
The $154.2 million project is one of the largest financing deals for a utility-scale standalone battery storage project. An Energy Storage Agreement (ESA) with Clean Power Alliance (CPA) for Luna Storage was signed in April 2020.
“We are thrilled to help utility-scale storage take a significant step forward in the financing space with the Luna Storage deal,” Brian Callaway, vice president of growth initiatives for AES Clean Energy, said. “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.”
Luna Storage is expected to come online later in 2021.
“Closing this landmark debt financing deal underscores the advancements of standalone battery storage technology to help us transition to a reliable, carbon-free grid,” James Marshall, chief financial officer for AES Clean Energy, said. “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.”