Recurrent Energy has successfully financed the Papago Energy Storage Project with a capacity of 1,200 megawatt hours in Maricopa County, Arizona, for $513 million.
Canadian Solar's fully owned subsidiary, Recurrent Energy, a developer and owner of solar and energy storage power plants, has successfully financed the Papago Energy Storage Project with a capacity of 1,200 megawatt hours in Maricopa County, Arizona, for $513 million (approximately RMB 3.725 billion). The project is expected to start construction in the third quarter of 2024 and to be commercially operational in the second quarter of 2025.
As Arizona's largest energy storage project, the Papago Energy Storage Project has signed a 20-year fee agreement with Arizona Public Service Company and is expected to create 200 local jobs during construction.
After the completion of the Papago Energy Storage Project, Recurrent Energy will hold and operate the project entirely. The project is expected to provide four hours of power supply to approximately 244,000 households per day. In this financing, Mitsubishi UFJ Financial Group and North German State Bank served as lead coordinators. The financing includes $249 million in construction and term loans, $163 million in tax equity bridge loans, and $101 million in letter of credit financing. The joint lead banks participating in this transaction include Bank of America, CoBank, DNB, Rabobank, Siemens and Zions.
It is worth mentioning that last month, Recurrent Energy reached a multi-currency revolving credit financing agreement worth up to €1.3 billion (approximately RMB 10.2 billion) with ten banks to finance renewable energy projects in multiple European countries. Recurrent Energy and financial institutions participating in the financing signed the agreement in Seville, Spain.
Recurrent Energy will use this financing to continue developing and constructing solar and energy storage projects in countries such as Spain, Italy, the United Kingdom, the Netherlands, France and Germany. The term of use for this green loan is three years, with the option to extend. The initial fund size is €674 million, expandable to approximately €1.3 billion. The agreement not only covers financing needs for self-operated and contracted projects, but also allows credit to be received in either euros or British pounds.