Aypa Power, a Blackstone portfolio company specialising in large-scale hybrid energy projects, announced it has secured $535mn in debt financing for its Vidal project, a combined solar and storage facility located in southeastern California. The project will be built in San Bernardino County and is scheduled to begin operations in 2026.
Structured financing by a banking consortium
The transaction was structured with Santander Corporate & Investment Banking acting as Coordinating Lead Arranger, Green Loan Coordinator, Lender and LC Issuer. U.S. Bank National Association, through its U.S. Bancorp Impact Finance subsidiary, and Zions Bancorporation, N.A. acted as Mandated Lead Arrangers and Lenders. Siemens Financial Services and Associated Bank, N.A. served as Managing Agents and Lenders. Specific terms of the financing, including interest rates or guarantees, were not disclosed.
The Vidal project will consist of 160 megawatts (MW) of solar generation capacity paired with a battery energy storage system (BESS) of equal capacity, totalling 160 MW / 640 megawatt-hours (MWh). This configuration allows for flexible energy distribution according to grid demands.
Long-term power purchase agreement
Once operational, the facility will supply electricity to San Diego Community Power under a long-term power purchase agreement. The commercial arrangement also includes the delivery of capacity services and renewable energy certificates. No information was disclosed regarding the specific duration or price terms of the agreement.
According to Aypa Power, the project is expected to generate over $13.5mn (approximately €12.5mn) in local economic benefits and create up to 260 temporary construction jobs in San Bernardino County. These figures have not been independently verified.
Expansion of hybrid asset portfolio
This project forms part of Aypa Power’s strategy to expand its presence in the North American energy storage and hybrid infrastructure market. The company continues to grow its portfolio of grid-connected assets across several U.S. states. No information was disclosed regarding the financing of potential future projects.
“The closing of this financing reflects financial institutions’ confidence in our ability to deliver high-performing grid-scale assets,” said Marc Atlas, Chief Financial Officer at Aypa Power, in a statement released on May 12.
