Recurrent Energy, a clean energy project development platform owned by Canadian Solar, has confirmed the initial closing and funding of an investment by BlackRock through a fund managed by its Climate Infrastructure business.
The transaction, initially announced in January 2024, has now reached fruition following the satisfaction of requisite regulatory approvals and other conditions, Recurrent said.
According to the announcement, BlackRock's investment of $500 million represents a significant portion of the planned capital infusion, constituting 20% of Recurrent Energy's outstanding fully diluted shares on an as-converted basis once the transaction is fully completed. Canadian Solar will retain the majority shares of Recurrent Energy.
This investment milestone is expected to facilitate Recurrent Energy's strategic evolution from a pure developer to a developer plus long-term owner and operator in targeted markets such as the US and Europe. The company aims to enhance its revenue stability by investing in high-value project development and leveraging its diversified global project pipeline.
See also: Recurrent Energy Secures $200 Million Financing for 134MW Liberty Solar Project in Texas
Ismael Guerrero, CEO of Recurrent Energy, expressed appreciation for BlackRock's support and highlighted the significance of the investment in advancing their global clean energy projects: “With this financial and strategic support from BlackRock, Recurrent Energy is well-equipped to advance our development of key solar and energy storage projects globally.”
David Giordano, Global Head of Climate Infrastructure at BlackRock, emphasized the potential for collaboration between the two entities to foster growth in utility-scale solar and battery energy storage projects: “This investment from the BlackRock Climate Infrastructure Global Renewable Power Fund IV positions Recurrent Energy to grow the development, construction, and management of utility-scale solar and battery energy storage projects in core, high-growth markets.”
See also: Recurrent Energy Signs Virtual Power Purchase Agreement for 100MW Solar Project in Texas
Recurrent Energy boasts a robust track record in clean energy project development, having developed, built, and connected over 10GWp of solar power projects and 3.3GWh of battery energy storage projects across six continents since 2009. As of March 31, 2024, the company's global project development pipeline includes 26GW in solar and 56GWh in storage, with expectations to have 4GW of solar and 2GWh of storage in operation in the US and Europe by 2026.
