Recurrent Energy, a subsidiary of Canadian Solar, has secured $695m in project financing and tax equity to support the construction of its 330MW Cobalt Solar facility in Riverside County, California, US.
The funding comprises approximately $484m in debt financing, arranged by Mitsubishi UFJ Financial Group (MUFG) and Nord/LB, and a further $211m in tax equity provided by Wells Fargo.
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The Cobalt Solar project, located around 20 miles west of Blythe, California, is under construction and is planned to begin commercial operations by the end of 2027.
Blattner Energy has been selected as the engineering, procurement, and construction (EPC) provider for the development.
The debt financing package includes construction and term loans, a tax equity bridge loan, and a letter of credit facility.
MUFG managing director Fred Zelaya said: “MUFG is pleased to support Recurrent Energy as they strive to meet the growing energy demands of the US.
“We value the opportunity to help Recurrent Energy augment large-scale renewable energy infrastructure and power capacity.”
Once operational, the Cobalt Solar facility is projected to generate enough electricity to meet the needs of approximately 82,000 homes annually.
Recurrent Energy estimates the project will contribute about $14m in property tax revenue to Riverside County over its lifetime.
Recurrent Energy CEO Dylan Marx said: “We are thrilled to close the project financing and ramp up construction of Cobalt Solar. This project represents a significant addition to the US energy landscape and will contribute meaningfully to meeting the country’s growing electricity demand.
“We appreciate the continued support and collaboration of MUFG, Nord/LB, and Wells Fargo in bringing this initiative forward.”
In a separate development, Recurrent Energy announced that its Carwarp Energy Park near Mildura in Victoria, Australia, has reached commercial operations.
The 150MWac Australian solar park was supported by a long-term power purchase agreement (PPA) with Microsoft.
The site is connected to the National Electricity Market (NEM) through the Victorian transmission network and has approvals in place to add a 120MW battery storage system.
