Recurrent Energy, a subsidiary of Canadian Solar Inc (NASDAQ: CSIQ), has obtained USD 513 million (EUR 477.2 million) in project financing to support the development of a 1,200-MWh energy storage facility in Maricopa County, Arizona.
The Papago Storage facility, designed to dispatch enough electricity to power approximately 244,000 homes for four hours daily, is slated to begin construction in the third quarter of 2024, with commissioning expected in the second quarter of 2025.
See also: Recurrent Energy Initiates Environmental Permitting for 250-MW Solar and Storage Project in Chile
The project has secured a 20-year tolling agreement with Arizona Public Service Company. Recurrent Energy will own and operate the facility.
The financing package includes a USD 249 million construction and term loan, a USD 163 million tax equity bridge loan, and a USD 101 million letter of credit facility. This financing was arranged by a bank syndicate led by MUFG and Nord/LB, with joint lead arrangers including Bank of America, CoBank, DNB, Rabobank, Siemens, and Zions.
See also: Recurrent Energy Secures US$70 million Financing for Jaiba III Solar Project in Brazil
“When we began developing Papago Storage in 2016, the Arizona storage market was in its infancy. Today, Arizona is one of the fastest-growing markets for energy storage in the United States,” said Ismael Guerrero, CEO of Recurrent Energy.
