Recurrent Energy, a subsidiary of Canadian Solar, has closed project financing and tax equity for its 200MWh Fort Duncan Storage facility, located in Maverick County, Texas. The project, which is currently under construction, is expected to begin operations by the summer of 2025, aiming to support peak power demand in the Electric Reliability Council of Texas (ERCOT) grid.
The financing, totaling US$112 million, was led by Nord/LB and includes a construction and term loan, a tax equity bridge loan, and a letter of credit facility. Additionally, Recurrent Energy secured a US$71 million tax equity partnership with Greenprint Capital.
Ismael Guerrero, CEO of Recurrent Energy, emphasized the importance of energy infrastructure projects like Fort Duncan Storage in meeting growing demand. “As Texas adds record amounts of generation to support economic growth and AI-driven demand, energy infrastructure projects like Fort Duncan Storage are making the Texas grid more reliable and resilient,” Guerrero said. “Thank you to our partners at Nord/LB and Greenprint for their innovative partnership on these transactions. We are pleased to support the growing Texas economy with infrastructure that improves reliability and supports the use of low-cost renewable energy.”
Nord/LB’s Sondra Martinez also highlighted the significance of the financing, noting, “This transaction highlights the longstanding relationship between our firms and our ability to work together on creative financing structures to advance our shared commitment to the clean energy transition. Nord/LB is proud to be a trusted partner, leveraging our ERCOT market knowledge and battery storage expertise, to bring this transaction to a successful close.”
Greenprint Capital’s Peter DeFazio added, “The Fort Duncan Storage project exemplifies how strategic investments in clean energy infrastructure can enhance grid reliability while generating strong financial returns. By leveraging tax equity, we’re enabling innovative energy solutions that support a more resilient and self-sufficient ERCOT grid.”
The Fort Duncan Storage facility will operate on a merchant basis, storing and dispatching power to the ERCOT grid in response to market demand. Once operational, the project will have the capacity to serve up to 66,100 households with a two-hour cycle of stored electricity.
This project represents a significant step toward bolstering the reliability of Texas’ power grid, especially as the state continues to expand its renewable energy infrastructure to meet growing demand.
