Recurrent Energy Secures $160 mn Financing for Bayou Galion Solar Project

Recurrent Energy solar business

Recurrent Energy, a subsidiary of Canadian Solar, and a global player in solar and energy storage assets, has announced the procurement of $160 million in project financing for its Bayou Galion Solar project in Louisiana.

Located in Morehouse Parish, Northeast Louisiana, the solar power project, under construction, is slated to commence operations by fall 2024.

Software major Microsoft Corporation has committed to purchasing the entire energy output and renewable energy credits generated by the Bayou Galion Solar project, aligning with its goal to achieve carbon negativity by 2030.

This initiative will significantly bolster Louisiana’s renewable energy capacity, with the state boasting 145 MW of operational wind, solar, and energy storage capacity as of September 2023.

Facilitating the financing, Mitsubishi UFJ Financial Group, Inc. (MUFG) served as the Coordinating Lead Arranger. Fred Zelaya, Managing Director of Project Finance Americas at MUFG, expressed the institution’s satisfaction in supporting Recurrent Energy and enabling Microsoft to progress toward its climate objectives.

Development of the Bayou Galion Solar project commenced in 2018, with construction commencing in December 2023. Recurrent Energy appointed Primoris Renewables Energy as its engineering, procurement, and construction partner.

Following completion, Recurrent Energy will assume ownership and operation of the project, aligning with its commitment to expanding its portfolio of renewable energy projects.

Ismael Guerrero, CEO of Recurrent Energy, expressed satisfaction in achieving project financing and signing a Power Purchase Agreement (PPA) for Bayou Galion Solar, labeling it a significant milestone. Guerrero emphasized the project’s role in advancing Recurrent Energy’s pipeline in new markets and expanding project ownership.

Furthermore, he underscored the project’s importance in strengthening relationships with esteemed partners like MUFG and establishing new ties with Microsoft, a major player in renewable energy procurement on a global scale.