SPower, Now Part Of AES Clean Energy, Closes Landmark Debt Financing For A 400 MWh Standalone Battery Storage Project in California

Landmark financial deal for Luna Storage showcases standalone storage viability in pursuit of a more reliable grid
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ARLINGTON, Va., Feb. 8, 2021 /PRNewswire/ -- The AES Corporation  (AES) - Get Report announced the closing of $154.2 million in non-recourse debt financing for Luna Storage, a 400-megawatt hour standalone lithium-ion battery storage project in the City of Lancaster, in Los Angeles County, California. The transaction was closed by sPower, an Independent Power Producer (IPP), in late December 2020. In early January 2021, sPower merged to become part of AES' clean energy business in the United States. The combined business represents one of the top renewables growth platforms in the country with the expertise to innovate customizable renewable energy solutions. 

Energy storage is at the dawn of a generational opportunity to advance our society into the clean energy future...

The $154.2 million non-recourse debt raise, arranged by KeyBanc Capital Markets Inc., Credit Agricole Corporate and Investment Bank, Silicon Valley Bank, and Export Development Canada, is one of the largest financing deals for a utility-scale standalone battery storage project. An Energy Storage Agreement (ESA) with Clean Power Alliance (CPA) for Luna Storage was signed in April 2020, making this the largest ESA for a Community Choice Aggregation (CCA) in California.  

"We are thrilled to help utility-scale storage take a significant step forward in the financing space with the Luna Storage deal," said Brian Callaway, Vice President of Growth Initiatives for AES Clean Energy. "Efficiently accessing and moving the capital markets for both ourselves and our customers is core to our business. I am grateful for the collaboration and commitment of our financing partners in bringing this innovative financial solution to life, setting a precedent for the future of energy storage deals." 

"Storage is at the dawn of a generational opportunity to advance our society into the energy future - and leading the Luna Storage transaction with our partners at AES Clean Energy has helped to pave the way," said Aaron Klein, a Managing Director in KeyBanc Capital Markets Utilities, Power and Renewables Group.  

"Closing this landmark debt financing deal underscores the advancements of standalone battery storage technology to help us transition to a reliable, carbon-free grid," explained James Marshall, Chief Financial Officer for AES Clean Energy. "The Luna Storage project will enable Clean Power Alliance (CPA) to cost effectively integrate intermittent renewable energy resources into the grid, providing more reliability for their customers at a fixed price." 

Luna Storage has a 15-year contract and is expected to come online later in 2021. Once online, Luna Storage will help CPA and the broader state of California achieve their progressive renewable energy commitments by improving the statewide grid reliability with fossil-free resources.   

About AES The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today. For more information, visit  www.aes.com

Safe Harbor Disclosure   This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES' current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our expectations regarding the COVID-19 pandemic, accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as the execution of PPAs, conversion of our backlog and growth investments at normalized investment levels and rates of return consistent with prior experience.  

Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES' filings with the Securities and Exchange Commission (the "SEC"), including, but not limited to, the risks discussed under Item 1A: "Risk Factors" and Item 7: "Management's Discussion & Analysis" in AES' 2019 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES' filings to learn more about the risk factors associated with AES' business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.  

Any Stockholder who desires a copy of the Company's 2019 Annual Report on Form 10-K filed February 27, 2020 with the SEC may obtain a copy (excluding Exhibits) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Form 10-K may be obtained by visiting the Company's website at  www.aes.com .  

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SOURCE The AES Corporation