Recurrent Energy, a wholly owned subsidiary of Canadian Solar, has closed financing for a 100-megawatt solar power project.
The renewable energy company has received debt from Santander Bank and tax equity investment commitment from US Bancorp Community Development Corporation (USBCDC) for the Mustang solar power project.
According to a statement, Recurrent Energy will be the managing member of the project. It will own and operate Mustang which is being constructed in California.
The agreement with Santander Bank entails provision of $165 million in construction lending, a tax equity bridge loan, and a term loan option.
A separate agreement with USBCDC includes tax equity investment in the project.
The Mustang project covers about 1,000 acres in Kings County. The project is expected to go into commercial operation toward the end of next year. Blattner Energy is the engineering, procurement and construction contractor for the project.
By an estimate the project is expected to generate adequate clean solar energy to meet the average power requirements of about 28,000 homes.
Also, the electricity and associated renewable energy credits generated by the facility will be sold under long-term power purchase agreements.
Ajith Kumar S