Goldman Sachs Commits $169M to Arevon’s 1,200 MWh Nighthawk Storage Project
Goldman Sachs Alternatives has invested $169 million in preferred equity for Arevon’s $920 million financing of the 300 MW/1,200 MWh Nighthawk Energy Storage Project in Poway, California, structured to monetize federal tax credits. This marks GS’s latest climate credit deployment within its $625 billion alternatives business.
1. Preferred Equity Investment Details
Goldman Sachs Alternatives contributed $169 million in preferred equity to support monetization of federal tax credits for Arevon’s Nighthawk Energy Storage Project. This equity tranche sits alongside a $482 million debt facility and $268 million tax credit transfer commitment in the project’s $920 million financing package.
2. Project Scope and Impact
The 300 MW/1,200 MWh Nighthawk facility under construction in Poway, California, will employ lithium iron phosphate batteries, power up to 385,000 homes for four hours during peak demand, and provide long-term resource adequacy capacity to PG&E under a multi-year contract.
3. Alignment with GS’s Climate Credit Strategy
This transaction underscores Goldman Sachs’ climate credit initiative within its Private Credit business, which manages over $625 billion in alternatives. The firm aims to deploy bespoke financing solutions that deliver risk-adjusted returns while accelerating grid reliability and the energy transition.