Recurrent Energy Secures $500M Capital Commitment

Recurrent Energy

Recurrent Energy, a subsidiary of Canadian Solar Inc. (NASDAQ: CSIQ) and a global developer and owner of solar and energy storage assets, secured a $500M equity investment commitment, convertible into common equity, from BlackRock through a fund managed by its Climate Infrastructure business.

Closing of the transaction is subject to regulatory approvals and certain terms and conditions in accordance with the transaction agreements.

The company intends to use the funds to grow its project development pipeline while executing its strategy to transition from a pure developer to a developer plus long-term owner and operator in select markets including the U.S. and Europe.

Led by Ismael Guerrero, CEO, Recurrent Energy provides utility-scale solar and energy storage project development, ownership and operations platforms, with a team of in-house energy experts. The firm expects to have 4 GW of solar and 2 GWh of storage in operation in the U.S. and Europe by 2026. The perimeter of the transaction includes the U.S., Canada, Spain, Italy, the U.K., France, the Netherlands, Germany, South Africa, Brazil, Chile, Colombia, Australia, South Korea and Taiwan, and excludes Canadian Solar’s project development business in Japan and China, and certain assets in Latin America and Taiwan.

Commenting on the news Ismael Guerrero said: “We are delighted to have the support of BlackRock, one of the largest and most sophisticated renewable energy investors in the world, as we scale Recurrent Energy in response to massive global demand for renewable energy and energy storage solutions. This investment will support our growth and continued ambition to make a difference by leading the renewable energy transition across the world. Our mission is to deliver clean, reliable and affordable power to the world, today and tomorrow, and this milestone will help us continue to achieve this goal.”

FinSMEs

24/01/2024