Canadian Solar's Recurrent Energy Secures 500 Million Investment Commitment from BlackRock
Summary
The investment, convertible into common equity, represents 20% of the outstanding fully diluted shares of Recurrent Energy on an as-converted basis.The infusion of capital from BlackRock through a fund managed by its Climate Infrastructure business will provide Recurrent Energy with additional resources to bolster its high-value project development pipeline. Canadian Solar will retain the majority shares of Recurrent Energy, continuing to own the remaining stake after the completion of the investment.Recurrent Energy, recognized as one of the worlds largest and most geographically diversified utility-scale solar and energy storage project development platforms, has a notable track record of developing around 9 GWp of solar and 3 GWh of battery storage power plants across six continents since its establishment in 2009.As of September 30, 2023, Recurrent Energys global development pipeline includes 26 GW in solar and 55 GWh in storage, with 13 GW and 12 GWh respectively in projects with interconnections. The company anticipates having 4 GW of solar and 2 GWh of storage in operation in the U.S. and Europe by 2026.The investment will facilitate Recurrent Energys transition from a pure developer to a developer plus long-term owner and operator in select markets, including the U.S. and Europe. This strategic shift aims to create a more diversified portfolio, ensuring stable long-term revenue in low-risk currencies and enhancing the value of Recurrent Energys project development pipeline.The transaction encompasses various regions, including the U.S., Canada, Spain, Italy, the U.K., France, the Netherlands, Germany, South Africa, Brazil, Chile, Colombia, Australia, South Korea, and Taiwan. Notably, it excludes Canadian Solars project development business in Japan and China, along with certain assets in Latin America and Taiwan.