Recurrent Energy Secures $500 Million Capital Boost from BlackRock for Global Renewable Energy Expansion

Recurrent Energy, a subsidiary of Canadian Solar, secures a $500 million investment commitment from BlackRock’s Climate Infrastructure business. The investment, convertible into common equity, represents 20% of Recurrent Energy’s outstanding shares. Canadian Solar retains the majority ownership.

This capital injection supports Recurrent Energy’s transition to a developer and long-term owner-operator, enhancing its project development pipeline in the U.S. and Europe. The move aims to diversify the portfolio, ensuring stable, long-term revenue in low-risk currencies. As of September 30, 2023, Recurrent Energy boasts a global development pipeline of 26 GW in solar and 55 GWh in storage, with plans for 4 GW of solar and 2 GWh of storage in operation by 2026 across various regions. The transaction encompasses multiple countries but excludes certain regions and assets, pending regulatory approvals.

Speaking about the development, Dr. Shawn Qu, Chairman and CEO, Canadian Solar, said, “We started our global energy development business in 2009 and have since strategically grown Recurrent Energy as Canadian Solar’s premier renewable energy platform, forging a new path in developing, financing and constructing first-of-their kind solar and energy storage projects. We are now at an inflection point for renewable energy growth. 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.”

Ismael Guerrero, CEO of Recurrent Energy, added, “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. This investment will support our growth and continued ambition to make a difference by leading the renewable energy transition across the world. Our mission is to deliver clean, reliable and affordable power to the world, today and tomorrow, and this milestone will help us continue to achieve this goal.”

David Giordano, Global Head of Climate Infrastructure and Chief Investment Officer of Transition Capital, BlackRock, commented, “We are excited to partner on behalf of our clients with Recurrent Energy. We believe this partnership will help unlock the full potential of Recurrent Energy’s impressive renewable energy project development platform. 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.”