Papago Storage, the largest energy storage project in
Arizona, holds a 20-year
tolling agreement with Arizona Public Service Company.
GUELPH,
ON, June 20, 2024 /PRNewswire/
-- Recurrent Energy, a subsidiary of Canadian Solar Inc.
("Canadian Solar") (NASDAQ: CSIQ) and a global developer, owner,
and operator of solar and energy storage assets, today announced it
has secured $513 million in project
financing for its landmark Papago Storage project located in
Maricopa County, Arizona.
Construction of the 1,200 MWh Papago Storage is slated to commence
in the third quarter of 2024, with commercial operations expected
to begin in the second quarter of 2025. The project holds a 20-year
tolling agreement with Arizona Public Service Company and is
expected to create 200 jobs during construction.
Following construction, Recurrent Energy will own and operate
Papago Storage. The project will dispatch enough power for
approximately 244,000 homes for four hours daily, enabling
renewable energy to further power Arizona's growing economy.
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.
Fred Zelaya, Managing Director
of MUFG, commented, "MUFG is pleased to have supported
Recurrent Energy on this important project, which will contribute
to the transition to a low-carbon economy. This transaction
showcases MUFG's expertise and leadership in financing renewable
energy and energy storage projects across the U.S. and globally. We
look forward to collaborating with Recurrent Energy on future
developments."
Sondra Martinez, Managing
Director of Nord/LB, said, "Nord/LB is pleased to have
acted as a coordinating lead arranger (CLA) for the successful
closing of Recurrent Energy's latest landmark project. Papago
Storage marks Nord/LB's 11th standalone storage project in the
U.S., and we are excited to take lead in financing strategic
battery storage assets, supporting the energy transition and
mission to achieve a more reliable, carbon-free grid. We look
forward to continuing to support Recurrent Energy's ambitious
growth in the industry."
Ismael Guerrero, CEO of
Recurrent Energy, added, "When we began developing Papago
Storage in 2016, the Arizona
storage market was in its infancy. Today, 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. Today, we are thrilled
to see nearly a decade of planning culminate in the financing of
what will be the largest energy storage project in Arizona. We appreciate the continued support
from our partners Nord/LB and MUFG in our shared mission to advance
the clean energy transition."
Recurrent Energy is a leader in solar and energy storage project
development. To date, 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 actively
developing a pipeline of 6.3 GWp of solar projects and 18.9 GWh of
battery energy storage projects.
About Recurrent Energy
Recurrent Energy is one of the
world's largest and most geographically diversified utility-scale
solar and energy storage project development, ownership and
operations platforms, with an industry-leading team of in-house
energy experts. Recurrent Energy is a subsidiary of Canadian Solar
Inc. Additional details are available at
www.recurrentenergy.com.
About Canadian Solar Inc.
Canadian Solar was founded in 2001 in Canada and is one of the world's largest solar
technology and renewable energy companies. It is a leading
manufacturer of solar photovoltaic modules, provider of solar
energy and battery energy storage solutions, and developer of
utility-scale solar power and battery energy storage projects with
a geographically diversified pipeline in various stages of
development. Over the past 23 years, Canadian Solar has
successfully delivered over 125 GW of premium-quality, solar
photovoltaic modules to customers across the world. Likewise, since
entering the project development business in 2010, Canadian Solar
has developed, built, and connected over 10 GWp of solar power
projects and 3.3 GWh of battery energy storage projects across the
world. Currently, the Company has over 1.2 GWp of solar power
projects in operation, 6.5 GWp of projects under construction or in
backlog (late-stage), and an additional 19.8 GWp of projects in
advanced and early-stage pipeline. In addition, the Company has 600
MWh of battery energy storage projects in operation and a total
battery energy storage project development pipeline of around 56
GWh, including approximately 4.3 GWh under construction or in
backlog, and an additional 51.6 GWh at advanced and early-stage
development. Canadian Solar is one of the most bankable companies
in the solar and renewable energy industry, having been publicly
listed on the NASDAQ since 2006. For additional information
about the Company, follow Canadian Solar on LinkedIn or
visit www.canadiansolar.com.
Safe Harbor/Forward-Looking Statements
Certain statements in this press release are forward-looking
statements that involve a number of risks and uncertainties that
could cause actual results to differ materially. These statements
are made under the "Safe Harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. In some cases, you can
identify forward-looking statements by such terms as "believes,"
"expects," "anticipates," "intends," "estimates," the negative of
these terms, or other comparable terminology. Factors that could
cause actual results to differ include general business, regulatory
and economic conditions and the state of the solar and battery
storage market and industry; geopolitical tensions and conflicts,
including impasses, sanctions and export controls; volatility,
uncertainty, delays and disruptions related to the COVID-19
pandemic; supply chain disruptions; governmental support for the
deployment of solar power; future available supplies of high-purity
silicon; demand for end-use products by consumers and inventory
levels of such products in the supply chain; changes in demand from
significant customers; changes in demand from major markets, such
as Japan, the U.S., China, Brazil
and Europe; changes in effective
tax rates; changes in customer order patterns; changes in product
mix; changes in corporate responsibility, especially environmental,
social and governance ("ESG") requirements; capacity utilization;
level of competition; pricing pressure and declines in or failure
to timely adjust average selling prices; delays in new product
introduction; delays in utility-scale project approval process;
delays in utility-scale project construction; delays in the
completion of project sales; continued success in technological
innovations and delivery of products with the features that
customers demand; shortage in supply of materials or capacity
requirements; availability of financing; exchange and inflation
rate fluctuations; litigation and other risks as described in
Canadian Solar's filings with the Securities and Exchange
Commission, including its annual report on Form 20-F filed on
April 26, 2024. Although Canadian
Solar and Recurrent Energy believe that the expectations reflected
in the forward-looking statements are reasonable, it cannot
guarantee future results, level of activity, performance, or
achievements. Investors should not place undue reliance on these
forward-looking statements. All information provided in this press
release is as of today's date, unless otherwise stated, and
Canadian Solar and Recurrent Energy undertake no duty to update
such information, except as required under applicable law.
Canadian Solar Inc. Investor Relations Contact Wina
Huang
Investor Relations
Canadian Solar Inc.
investor@canadiansolar.com
Recurrent Energy Media Contact
Inés Arrimadas
Recurrent Energy
comms@recurrentenergy.com
Ally Copple
Innovant
Public Relations
713-201-8800
Ally@InnovantPR.com
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SOURCE Canadian Solar Inc.