A fund managed by BlackRock Inc.'s Climate Infrastructure business has finalized a USD 500 million (EUR 453.5 million) investment in Recurrent Energy, a solar and energy storage division of Canadian Solar Inc.
The closing of this transaction, which provides BlackRock with a 20% stake in Recurrent Energy's fully diluted shares, was confirmed on Thursday.
The deal was structured in two payments, with the first completed in June after the initial announcement in January. Canadian Solar retains a controlling interest in Recurrent Energy despite this significant investment.
The funds are intended to facilitate Recurrent Energy's strategic shift from being solely a developer to a dual role that includes long-term ownership and operation of energy projects.
This transition is expected to enhance the company's ability to generate more stable long-term revenue in low-risk currencies and capitalize on the value of its diverse global project development pipeline.
Currently, Recurrent Energy boasts a pipeline of 26 GW of solar projects and 56 GWh of battery energy storage initiatives. The company anticipates having 4 GW of solar capacity and 2 GWh of storage operational by 2026 in the US and Europe, positioning itself for growth in these critical markets.
