Recurrent Energy, a subsidiary of Canadian Solar, has secured $513 million in project financing for its Papago Storage project located in Maricopa County, Arizona.
Recurrent Energy will start the construction of the 1,200 MWh Papago Storage project during the third quarter of 2024. Recurrent Energy is planning to start commercial operations in the second quarter of 2025.
Recurrent Energy said the storage project holds a 20-year tolling agreement with Arizona Public Service Company. Recurrent Energy said the storage project is expected to create 200 jobs during construction supporting economy of Arizona.
Recurrent Energy will own and operate Papago Storage. The project will supply enough power for 244,000 homes for four hours daily in Arizona.
MUFG and Nord/LB acted as coordinating lead arrangers for the Papago Storage project financing. The financing includes a $249 million construction and term loan, a $163 million tax equity bridge loan, and a $101 million letter of credit facility. Joint lead arrangers for the transaction included Bank of America, CoBank, DNB, Rabobank, Siemens, and Zions.
Ismael Guerrero, CEO of Recurrent Energy, said: “Arizona is one of the fastest-growing markets for energy storage in the United States, bolstered by the state’s expanding economy and cost-effective renewable energy resources.”
Globally, Recurrent Energy has delivered more than 10 GWp of solar power projects and 3.3 GWh of energy storage projects, boasting a global project development pipeline of 26 GWp and 56 GWh for solar and energy storage respectively. In North America, Recurrent Energy is developing a pipeline of 6.3 GWp of solar projects and 18.9 GWh of battery energy storage projects.