Arizona Public Service Selects Recurrent Energy for 1,200 MWh Energy Storage Tolling Agreement

Representational image. Credit: Canva

Canadian Solar Inc. announced that its subsidiary, Recurrent Energy, has secured a 20-year tolling agreement with Arizona Public Service Company (“APS”) for Papago Storage—a pioneering 1,200 MWh energy storage project in Maricopa County, Arizona. Construction for Papago Storage is slated to commence in Q3 2024, targeting commercial operation by Q2 2025. Upon completion, Papago Storage will claim the distinction of being Arizona’s most extensive standalone energy storage venture. This tolling agreement is important for Arizona as it grapples with escalating electricity demand. Papago Storage’s energy capacity will synergize with the state’s solar energy capabilities, bridging the gap for increased electricity needs.


Recurrent Energy is a  global player in the utility-scale solar and battery storage sector, boasting a diverse portfolio across six continents—a solid 9 GW solar and 3 GWh battery storage capacity. In 2022, it added 2 GWh energy storage projects in the U.S., becoming one of the country’s largest energy storage developers.

Initiated in 2016, Papago Storage’s development journey is a testament to Recurrent Energy’s ambition. Post-construction, Recurrent Energy will assume the project’s ownership and operations. After commissioning, Papago Storage will generate enough power to meet the daily energy needs of around 244,000 households for four hours.

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APS, serving as Arizona’s pioneering electric company, extends its reach to over 1.3 million commercial and residential customers across 11 out of 15 counties. A commitment to furnish its customers with 100% clean, carbon-free energy by 2050 is  APS’s vision. The tolling agreement for Papago Storage follows APS’s All Resource RFP conducted in May 2022. In pursuit of 1 to 1.5 GW resources, including up to 800 MW from renewable sources, this partnership solidifies Arizona’s commitment towsustainable energy solutions.

Dr. Shawn Qu, Chairman and CEO, Canadian Solar, commented, “This landmark project – Papago Storage – will give Arizonans more renewable energy every day. Recurrent Energy is delighted that Arizona Public Service selected Papago Storage via its rigorous competitive procurement process to support its 1.3 million customers’ growing need for affordable and reliable energy storage, and we look forward to growing our partnerships with APS and other utilities that are adding record amounts of energy storage in their service areas.”

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