Recurrent Energy, a prominent global developer and owner of solar and energy storage assets, has finalized a significant milestone with the securing of R$343 million (approximately US$70 million) in non-recourse project financing from Banco do Nordeste do Brasil S.A. (BNB) for its Jaiba III solar project in Brazil.
The Jaiba III project, boasting a capacity of 152 MWp, will benefit from financing extended over a 22-year period covering both construction and operation phases. The debt, linked to the National Consumer Price Index (IPCA), is designed to provide inflation-adjusted capital, ensuring better alignment with the Brazilian economy's dynamics.
Recurrent Energy has clinched a 15-year, inflation-adjusted power purchase agreement (PPA) for Jaiba III through a private auction with Usiminas, a leading flat steel company in Brazil. Currently under construction, the project is poised to make significant contributions to the local economy, employing nearly 900 individuals. Operational commencement is anticipated in the fourth quarter of 2024. Powered by Canadian Solar's high-efficiency BiHiKu modules, Jaiba III is expected to displace approximately 150,000 tons per year of carbon dioxide emissions.
Ismael Guerrero, CEO of Recurrent Energy, expressed satisfaction with the continued partnership with BNB, stating, “Brazil's steadfast commitment to sustainable public sector initiatives for clean and affordable solar energy infrastructure has solidified its position as the largest renewable energy market in Latin America.” Guerrero emphasized BNB's enduring participation in their solar portfolio as a testament to their confidence in Brazil's renewable energy sector's long-term potential.
