Recurrent Energy Secures $500 mn Investment Commitment from BlackRock for Solar Expansion

Recurrent Energy solar business

Recurrent Energy, a subsidiary of Canadian Solar, has received a $500 million equity investment commitment from BlackRock.

The investment, convertible into common equity, is facilitated through a fund managed by BlackRock’s Climate Infrastructure business. This significant financial injection represents 20 percent of the outstanding fully diluted shares of Recurrent Energy on an as-converted basis.

Canadian Solar will retain the majority of shares in Recurrent Energy following the completion of the investment. The infusion of capital from BlackRock aims to provide Recurrent Energy with the necessary resources to bolster its high-value project development pipeline and facilitate its transition into a developer-plus long-term owner and operator in key markets, including the U.S. and Europe.

The strategic shift is anticipated to diversify Recurrent Energy’s portfolio, ensuring more stable long-term revenue in low-risk currencies. This approach will empower the company to create and retain greater value within its project development pipeline.

Recurrent Energy has originated, developed, financed, and built around 9 GWp of solar and 3 GWh of battery storage power plants across six continents since 2009.

As of September 30, 2023, Recurrent Energy boasts a global development pipeline of 26 GW in solar and 55 GWh in storage, with 13 GW and 12 GWh respectively in interconnected projects. The company aims to have 4 GW of solar and 2 GWh of storage in operation in the U.S. and Europe by 2026.

“This investment will support our growth and continued ambition to make a difference by leading the renewable energy transition across the world,” Ismael Guerrero, CEO of Recurrent Energy, said.

David Giordano, Global Head of Climate Infrastructure and Chief Investment Officer of Transition Capital at BlackRock, highlighted the significance of the partnership, saying, “We believe this partnership will help unlock the full potential of Recurrent Energy’s impressive renewable energy project development platform.”

The investment comes at a time when solar energy is projected to almost triple between 2022 and 2027, becoming the largest source of power capacity globally, according to the International Energy Agency.

The growing demand for renewable energy, particularly in the U.S. and Europe, is driving interest in energy storage, with global cumulative deployments expected to exceed 1,000 GWh by 2030, according to Wood Mackenzie.