Clearway Closes Financing and Starts Construction on Solar and Battery Energy Storage Facilities in California

July 22, 2024
  • $700 million in construction financing closed for 200 MW Luna Valley Solar Project in Fresno County and 113.5 MW Daggett Standalone Storage facility in San Bernardino County
  • Projects contracted under long-term agreements with load-serving entities San Diego Gas & Electric, Southern California Edison, and Power & Water Resources Pooling Authority
  • Clearway strengthens state’s grid reliability with over 2.3 GW of new solar plus storage projects operating and in construction in California since 2018

 

SAN FRANCISCO – Clearway Energy Group (“Clearway”) announced today that it closed more than $700 million in construction financing and has begun construction on two major energy projects in Fresno and San Bernardino counties in California. Luna Valley is a 200 MW solar project in Fresno County. Daggett Storage is a 113.5 MW standalone battery energy storage project in San Bernardino County and is the final phase of the 482 MW Daggett Solar + 394 MW Storage complex.

“Luna Valley and Daggett 1 represent two major steps forward in California’s path to a reliable, affordable, and clean electric grid,” said Brooks Friedeman, VP of Capital Markets at Clearway. “We are grateful to our financial partners, customers, and local communities for their continued support for these investments.”

San Diego Gas & Electric (SDG&E) contracted equal amounts of solar power and energy storage from each of the Luna Valley and Daggett Storage 1 projects under 15-year agreements to achieve a virtually paired hybrid contract. Luna Valley’s remaining solar capacity is contracted under 20-year agreements with Southern California Edison and Power & Water Resources Pooling Authority.

Clearway assembled a bank consortium consisting of Nord/LB, Societe Generale, KeyBanc Capital Markets Inc., DNB, and ANZ to provide construction financing for the two projects.

Clearway has been a leading catalyst in transforming the state’s clean energy economy, putting more than 2,300 MW of solar plus storage projects into construction and operation in California alone over the last 5 years.

Construction is being led by Blattner. Once complete, Luna Valley Solar will generate enough reliable electricity to power more than 80,000 homes every year. Both projects are scheduled to reach commercial operations in 2025.

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