Arevon Energy operations began 300 MW/1,200 MWh Nighthawk project in Poway, reinforcing California’s electrical storage capacity.
Arevon Energy put its Nighthawk Energy Storage Project, and battery energy storage system (BESS) of 300 MW/1,200 MWh located in Poway, California, the facility thus becomes the largest standalone battery storage project in the company’s portfolio.
The Nighthawk BESS incorporates systems Tesla Megapack based on lithium iron phosphate batteries (LFP), the installation can store electricity during periods of high availability and return it to the grid when demand increases.
Furthermore, the project operates through a long-term agreement with Pacific Gas and Electric Company (PG&E) Arevon developed and built the facility and maintains both its ownership and operation.
Nighthawk brings 1,200 MWh of storage to California
With a power output of 300 MW and four hours of storage, Nighthawk has a total energy capacity of 1200 MWh or 1.2 GWh. According to the data released about the project, that capacity would allow the supply of an amount of electricity equivalent to the consumption of up to 385,000 households for four hours.
This capacity becomes important within a grid like California’s, where high solar generation during certain hours can temporarily exceed demand BESS systems they allow you to store some of that electricity and discharge it later during periods of higher consumption.
Thus, Nighthawk can help shift energy from high production hours to peak hours and support the stability of the electrical grid in the San Diego region.
Tesla Megapack and LFP batteries for large-scale storage
The infrastructure uses Tesla Megapackwith technology of LFP batteries this type of chemistry is widely used in stationary storage projects due to its thermal stability and operational life.
The installed systems integrate batteries, controls, and equipment designed to manage energy conversion. The project also includes associated electrical infrastructure to connect the storage to the grid.
In addition, battery management systems monitor operating parameters and allow automatic protection measures to be applied in the event of conditions outside of established ranges.
A project linked to strengthening the California network
The development of Nighthawk is related to the measures taken by the California Public Utilities Commission (CPUC) to increase the resources available in the state electricity system.
These guidelines promoted the entities responsible for electricity supply to contract additional capacity with the aim of improving network reliability.
Arevon acquired Nighthawk in 2020 as part of the Falcon portfolio of Tenaska which included other independent storage projects in California. Subsequently, in September 2023, Arevon directly assumed development of Nighthawk and the rest of the projects included in that portfolio.
Nighthawk mobilized US$920 million in financing
On the other hand, Arevon closed a financing package in March of approximately US$920 million to carry out the project. The transaction included a line of credit of US$482 million coordinated by Canadian Imperial Bank of Commerce (CIBC), along with the participation of ING Capital, NORD/LB, Santander and Zions Bancorporation.
A preferred equity investment was also structured US$169 million with Goldman Sachs Alternatives aimed at facilitating the monetization of tax credits. This was complemented by a tax credit transfer agreement for approximately US$268 million with a corporate buyer.
More than US$30 million in taxes over its useful life
In addition to its role within the electrical grid, Arevon estimates that Nighthawk will generate over US$30 million in property tax revenue during its operational life.
These resources can contribute to the funding of schools, public safety services, and local infrastructure, at its peak, the project employed more than 130 workers.
Arevon also developed activities with organizations in Poway and the San Diego metropolitan area related to youth programs, emergency services, climate education, and assistance to adults with special needs.
The commissioning of Nighthawk expands Arevon’s presence in California’s energy storage sector, the company is also developing the project Cormorant BESS, of 250 MW/1,000 MWh in Daly City, which is scheduled to become operational in 2027.
Source: Energy Storage
Photo: Arevon Energy
