Capital Dynamics Receives Tax Equity To Retrofit Its California Flats Solar Project With Battery Energy Storage

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Capital Dynamics, an independent global private asset management firm, announced its Clean Energy Infrastructure (CEI) business has secured tax equity investments from Goldman Sachs and U.S. Bank for the 60 megawatt (MW)/240 megawatt-hour (MWh) California Flats Battery Energy Storage System (California Flats BESS). The storage installation is being built on the same site as the 280 MWac California Flats Solar power plant operating within the historic Jack Ranch owned by The Hearst Corporation, located in San Luis Obispo and Monterey counties in central California. Arevon, a Capital Dynamics affiliate, is overseeing construction of the battery storage system and will operate it in conjunction with the California Flats Solar facility.

“Finalizing this tax equity investment allows us to continue driving the clean energy transition,” said Henry Deng, Vice President of Clean Energy Infrastructure at Capital Dynamics. “The California Flats BESS project is a leading-edge retrofit of an operating solar site, which furthers California’s decarbonization objectives. This transaction proves that CEI and Arevon’s established relationships with our financial partners puts scalable financing at our fingertips.”

California Flats BESS will store excess solar energy during the middle of the day for dispatch during evening peak demand periods. When completed later this year, the battery system will be bidding into the California energy market to support California’s reliability needs as part of a long-term offtake agreement with Apple.

“Our financial partners recognize not only our ability to deliver quality, bankable projects but also Arevon’s innovative approaches to improving asset performance,” said John Breckenridge, Head of Clean Energy Infrastructure at Capital Dynamics. “Arevon’s deep experience with energy storage solutions makes it ideal to manage construction of California Flats BESS and optimize the plant’s long-term operation.”

“We’re excited to invest in the addition of energy storage at the California Flats solar site, continuing to support Capital Dynamics as it helps meet the clean energy needs of California,” said Philip Hatchett, account manager with U.S. Bancorp Community Development Corporation’s (USBCDC) Environmental Finance team. USBCDC is the tax credit and community development subsidiary of U.S. Bank.  “Solar and storage investments like this are a tangible way to measure reductions in carbon footprint and combat climate change, and that will have a positive impact on our environment for years to come.”

“Financing that enables energy storage assets to be paired with solar farms allows renewable power to be shifted to times of peak load and simultaneously strengthens and stabilizes the grid,” said Vivek Kagzi, a vice president in the Sustainable Investing business within Goldman Sachs Asset Management. “This investment with Capital Dynamics is one of several that we have executed with the team and is part of our ongoing commitment to building a clean energy future.”

Amis, Patel & Brewer, LLP represented Capital Dynamics as legal counsel.

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