Recurrent Energy gets $513M for storage project in Arizona.

By Oliver Townsend Jun 23, 2024
Recurrent Energy secures $513 mn in financing for storage project in Arizona.jpegOrginal image from: https://www.greentechlead.com/renewable-energy/recurrent-energy-secures-513-mn-in-financing-for-papago-storage-project-in-arizona-46971

Recurrent Energy, a subsidiary of Canadian Solar, has recently secured $513 million in project financing for its Papago Storage project in Maricopa County, Arizona. This significant investment marks a milestone for the renewable energy sector, as Recurrent Energy prepares to start construction on the 1,200 MWh storage project in the third quarter of 2024. With commercial operations set to begin in the second quarter of 2025, the Papago Storage project is expected to create 200 jobs during construction, contributing to the local economy in Arizona.

Project Details and Impact

The Papago Storage project has entered into a 20-year tolling agreement with Arizona Public Service Company, solidifying its role in providing sustainable energy solutions to the region. Once operational, the project is projected to supply enough power for 244,000 homes for four hours daily, making a significant impact on the energy landscape in Arizona. The financing for the project includes a construction and term loan, a tax equity bridge loan, and a letter of credit facility, demonstrating the strong support and confidence from financial institutions.

Industry Growth and Future Prospects

Ismael Guerrero, CEO of Recurrent Energy, highlighted Arizona as one of the fastest-growing markets for energy storage in the United States. The state’s expanding economy and cost-effective renewable energy resources have positioned it as a key player in the transition towards sustainable energy solutions. Globally, Recurrent Energy has an impressive track record, having delivered over 10 GWp of solar power projects and 3.3 GWh of energy storage projects. With a robust project development pipeline in North America, Recurrent Energy is poised to further expand its reach in the renewable energy sector.

Investing in Renewable Energy

As the demand for renewable energy continues to grow, investments in projects like the Papago Storage facility play a crucial role in advancing clean energy initiatives and reducing carbon emissions. By securing substantial financing for the project, Recurrent Energy is not only driving innovation in the renewable energy sector but also creating job opportunities and contributing to the local economy. The success of the Papago Storage project underscores the importance of sustainable energy solutions in meeting the evolving needs of communities and industries.

Conclusion

The financing secured by Recurrent Energy for the Papago Storage project represents a significant step towards advancing renewable energy infrastructure in Arizona. With construction set to begin and commercial operations on the horizon, the project is poised to make a lasting impact on the energy landscape in the region. As the renewable energy sector continues to grow, investments in projects like Papago Storage demonstrate a commitment to sustainability and innovation, paving the way for a greener and more sustainable future.

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