Recurrent Energy, a solar power and energy storage subsidiary of Canadian Solar Inc. (CSIQ-Q), will receive a $500 million investment from BlackRock’s Climate Infrastructure fund to grow as a developer that operates around the world.
The investment represents 20 per cent of the outstanding fully diluted shares of Recurrent Energy on an as-converted basis.
"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,” Ismael Guerrero, CEO of Recurrent Energy, said in the announcement.
Recurrent, headquartered in Austin, Texas, had a global development pipeline of 26 gigawatts in solar energy and 55 gigawatt-hours in energy storage as of Sept. 30, 2023. It has developed nine gigawatt-peak of solar energy projects and three gigawatt-hours of battery storage power plants since 2009.
The company is an offshoot of Canadian Solar, a Toronto-headquartered solar equipment and battery storage manufacturer that is one of the world’s largest. Canadian Solar has 27 gigawatt-peak of solar power projects in development, and 55 gigawatt-hours of battery storage project development pipeline.
Shining Recurrent on more of the world
BlackRock’s investment will accelerate Recurrent’s goal of transitioning from a “pure developer to a developer plus long-term owner and operator in select markets including the U.S. and Europe,” according to the release.
Recurrent says the strategy is expected to create a more diversified portfolio, provide more stable long-term revenue in low-risk currencies and enable the company to create and retain greater value in its project development pipeline.
“The infusion of capital from our partner BlackRock, who is also Canadian Solar's largest institutional investor, will provide the resources needed to further scale the Recurrent Energy platform and meet record clean energy power demand across the world," Shawn Qu, chairman and CEO of Canadian Solar, said in the release.
The transaction’s geography covers North America, Europe, South America, Asia, Australia and South Africa.
Recurrent holds an operating project in Alberta named Hays and Jenner Solar, a 46-megawatt project combined. Some of its largest projects are in South America and the U.S, such as the 399-megawatt-peak Pirapora Solar in Brazil, and Crimson Storage in California with a 350-megawatt solar energy installation and a 1,400-megawatt-hour energy storage component.
“We believe this partnership will help unlock the full potential of Recurrent Energy's impressive renewable energy project development platform,” David Giordano, the global head of Climate Infrastructure at BlackRock, said in the release.
“Recurrent Energy is emblematic of our strategy of investing in leading renewable power generation assets and transition-enabling infrastructure, and we are pleased to make this first investment commitment from the fourth vintage of BlackRock's Climate Infrastructure fund franchise."
Canadian Solar will remain the majority shareholder of Recurrent Energy after the closing of the investment.