PROJECT SNAPSHOT
U.S.-based clean energy developer, Avantus has closed financing package of over $300 million for 100 MWac / 130 MWdc solar and a 400 MWh BESS Kitt Solar and Energy Storage Project in Pinal County, Arizona.
The financing package was closed with financial institutions Banco Bilbao Vizcaya Argentaria (BBVA) and Canadian Imperial Bank of Commerce (CIBC), New York Branch. It includes construction financing, a tax equity bridge loan and letters of credit.
The Kitt project integrates both solar generation and battery energy storage infrastructure. It plays an important role in grid resilience, storing solar energy during the day and dispatch it during evening peak demand hours and major weather events, as Arizona prepares for growing energy demand and hotter summers.
The project has a signed long-term power purchase agreement (PPA) with Arizona Public Service (APS). The electricity produced will be supplied to the regional grid and is expected to meet the power demand of around 32,000 Arizona homes.
The Kitt project is currently under construction and is expected to reach commercial operation by the end of 2026. The company claimed that during the construction phase, the Kitt is expected to create up to 500 construction jobs in the region. In addition to employment during development, the project is planned to contribute more than $25 million in local tax revenues over its operating life. These revenues are expected to support public services including schools, infrastructure and emergency services in the surrounding communities.
RES provides Engineering, procurement and construction (EPC) services for the project. The Battery storage system will be supplied and integrated by Fluence Energy using its Gridstack Pro energy storage technology platform. The Gridstack Pro system is designed for utility-scale deployments and includes integrated controls and safety architecture for large-capacity storage operations.
Legal advisory roles for the financing transaction included White & Case LLP acting as borrower’s counsel, with Fennemore Craig, P.C. serving as local counsel. Akin Gump LLP represented the financing parties, supported by Quarles & Brady LLP as local counsel.
The Kitt Solar and Energy Storage Project forms part of Avantus’ broader project development pipeline in the United States. The company is currently advancing approximately 24 GWdc of solar projects and around 75 GWh of energy storage capacity under development across the western United States. The Arizona project contributes to the company’s portfolio of hybrid solar and storage infrastructure designed to supply electricity to regional power markets with increasing demand for dispatchable renewable energy capacity.
Cliff Graham, CEO of Avantus said that the financing reflects the continued bankability of utility-scale solar and storage projects and the company’s expanding presence in Arizona.
Eugene Kasozi, Managing Director for Cleantech at BBVA said that the transaction demonstrates BBVA’s ability to structure financing for large solar and storage projects and support infrastructure development in U.S. power markets.
Ines Serrao, Managing Director and Co-Head of U.S. Project Finance & Infrastructure at CIBC said that the project financing supports grid reliability and contributes to meeting regional electricity demand.