Recurrent Energy, a global leader in solar and energy storage development and a subsidiary of Canadian Solar Inc., has announced the successful acquisition of $513 million in project financing for its landmark Papago Storage project.
Situated in Maricopa County, Arizona, the 1,200 MWh facility is set to be the largest of its kind in the state.
Project Timeline and Economic Impact
Construction of Papago Storage is scheduled to commence in the third quarter of 2024, with commercial operations expected to begin in the second quarter of 2025. This ambitious project is projected to create 200 jobs during the construction phase.
Upon completion, Recurrent Energy will own and operate the facility, which will be able to supply enough power to approximately 244,000 homes for four hours each day. The project is also expected to contribute significantly to Arizona’s growing economy by facilitating the utilization of renewable energy sources.
Financial Partners and Transaction Details
MUFG and Nord/LB served as coordinating lead arrangers for the financing of the Papago Storage project. The comprehensive financing package includes a $249 million construction and term loan, a $163 million tax equity bridge loan, and a $101 million letter of credit facility.
Notably, several other financial institutions participated as joint lead arrangers, including Bank of America, CoBank, DNB, Rabobank, Siemens, and Zions.
Statements from Project Partners
Fred Zelaya, Managing Director of MUFG, expressed enthusiasm for supporting Recurrent Energy in this endeavor, emphasizing the project’s contribution to the transition towards a low-carbon economy.
Sondra Martinez, Managing Director of Nord/LB, highlighted the project’s significance as their 11th standalone storage project in the U.S. and reiterated their commitment to financing strategic battery storage assets to support a more reliable and carbon-free grid.
Recurrent Energy’s Growth and Vision
Ismael Guerrero, CEO of Recurrent Energy, reflected on the company’s journey since initiating the Papago Storage project in 2016, when the Arizona storage market was still nascent. He expressed excitement about the rapid growth of energy storage in the state and the culmination of nearly a decade of planning in securing funding for this monumental project.
Company Overviews
Recurrent Energy is a prominent player in the solar and energy storage sector, having delivered over 10 GWp of solar power projects and 3.3 GWh of energy storage projects worldwide. The company boasts an extensive global project development pipeline.
Canadian Solar Inc., the parent company of Recurrent Energy, is a leading global provider of solar technology and renewable energy solutions. With a proven track record spanning over two decades, Canadian Solar has successfully delivered a substantial volume of solar photovoltaic modules to customers worldwide.
Disclaimer
This press release contains forward-looking statements that involve risks and uncertainties, which could cause actual results to differ materially. These statements are subject to the “Safe Harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995.