Introduction:
In a strategic move, Axium Infrastructure has acquired a 50% stake in the Edwards Sanborn 1B (ES1B) project from Terra-Gen, marking a significant development in the renewable energy sector. The deal, announced on January 11, 2024, adds to Axium's growing portfolio in the US. Let's delve into the details of this acquisition and its implications.
The ES1B Project
ES1B is the second phase of the Edwards Sanborn facility, boasting 412.5 MW of solar capacity and 1497 MWh of battery storage. Situated in Kern County, the project spans 6000 acres, utilizing land leased from Edwards Sanborn Air Force Base and adjacent private plots. With approximately 2.5 million PV modules and over 110,000 lithium-ion batteries, ES1B is part of a larger project, alongside ES1A, totaling 807 MWac of solar capacity and 3,002 MWh of battery storage.
Project Financing and Power Sales
Terra-Gen secured financing for ES1B in September 2022, with a total investment of $959 million. The project has secured power purchase agreements (PPAs) with key players like Digital Realty and San Jose Clean Energy, ensuring its commercial viability and contributing to California's renewable energy goals. Additionally, a long-term virtual PPA with Starbucks, facilitated by LevelTen Energy, further solidifies the project's sustainability.
Strategic Advisors
Axium Infrastructure was advised by Citi and King & Spalding, while Terra-Gen received counsel from BofA Securities and Latham & Watkins LLP. These strategic partnerships highlight the importance of expert advice in navigating complex renewable energy deals.
Future Outlook
The ES1B project, upon completion, is expected to be the world's largest integrated solar power and battery storage project, underscoring its significance in the renewable energy landscape. As development continues to interconnect an additional 2,000 MW of solar and energy storage to the CAISO grid, the Edwards Sanborn facility is poised to become a key player in the renewable energy market.
Conclusion
Axium Infrastructure's acquisition of a stake in the ES1B project signifies a significant step towards sustainable energy practices. The project's scale, strategic partnerships, and adherence to California's renewable energy goals position it as a leader in the global shift toward clean energy.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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