Renewable developer-operator Arevon Energy has placed its 300 MW / 1,200 MWh Nighthawk battery energy storage system in Poway, California, into commercial operation, its largest standalone battery to date and one of the biggest energy storage assets serving the San Diego grid. Nighthawk is under a long-term tolling agreement with Pacific Gas and Electric Company (PG&E) and will help California hit its capacity procurement targets driven by CPUC directives.
Tesla Megapack LFP Powers The San Diego Peaker Killer
The project uses Tesla Megapack systems built on lithium iron phosphate chemistry, prized for their long cycle life and improved thermal safety. Arevon developed, built, owns and operates the plant, which can dispatch enough electricity to power up to 385,000 homes for as long as four hours during peak demand. A ribbon-cutting ceremony on August 12 marked commercial operations, with project partners, local officials and community leaders on site.
Financing Stack Anchored By CIBC And Goldman Sachs
Arevon closed a $920 million financing package for Nighthawk in March 2026, including a $482 million debt facility led by CIBC with ING Capital, NORD/LB, Santander and Zions Bancorporation, a $169 million preferred equity investment arranged with Goldman Sachs Alternatives to monetize tax credits, and a $268 million tax credit transfer agreement with a corporate buyer. The plant is expected to generate more than $30 million in property tax revenue over its lifetime for schools, public safety and local infrastructure. During peak construction it employed over 130 workers.
Signals A Rush Of California LFP Grid Batteries
Nighthawk was the anchor of the Falcon portfolio Arevon acquired from Tenaska in 2020, and it now sits alongside the company's Avantus solar-plus-storage peer group and Arevon's own 250 MW / 1,000 MWh Cormorant BESS breaking ground in Daly City. The pipeline is a barometer of how quickly LFP grid storage is scaling into California's summer peak requirement — and how thick the queue of Megapack-anchored deals has become. Regional utilities are pairing these systems with new solar builds like the 1.1 GW Scatec Obelisk project as they hedge summer peak risk.
Reporting based on coverage from Energy-Storage.News, PR Newswire and Renewables Now.