Recurrent Energy Secures $70 Million Financing for Jaiba III Solar Project in Brazil

In a significant development, Recurrent Energy, a prominent developer and proprietor of solar and energy storage assets, has announced the successful acquisition of 343 million Brazilian reais (equivalent to approximately $70 million) in non-recourse project financing from Banco do Nordeste do Brasil S.A. (BNB) for its Jaiba III solar project in Brazil.

The Jaiba III project, boasting a capacity of 152 MWp, is set to receive financing spanning a 22-year period, encompassing both its construction and operational phases. This financing structure, tied to the National Consumer Price Index (IPCA), is anticipated to provide inflation-adjusted debt, facilitating better capital and resource alignment with the Brazilian economy.

Recurrent has further solidified its position by securing a 15-year, inflation-adjusted power purchase agreement (PPA) for Jaiba III via a private auction with Usiminas, a leading flat steel company in Brazil. Presently under construction, the project is estimated to engage nearly 900 individuals and is slated to commence operations in the fourth quarter of 2024. Jaiba III is powered by Canadian Solar’s high-efficiency BiHiKu modules and is expected to offset approximately 150,000 tons of carbon dioxide annually.

Ismael Guerrero, CEO of Recurrent Energy, expressed satisfaction with the extended partnership with BNB, stating, “Brazil’s steadfast commitment to sustainable public sector initiatives for clean and affordable solar energy infrastructure has solidified its position as the largest renewable energy market in Latin America. BNB’s enduring participation in our solar portfolio reinforces our confidence in the long-term potential of Brazil’s renewable energy sector.”

Recurrent Energy currently owns or operates approximately 2 GWp of solar projects across Latin America, either in operation or projected to commence commercial operations in 2024. With a presence in Bogotà, Mexico City, Santiago, and São Paulo, Recurrent maintains an active development pipeline of 5 GWp of solar projects and 2 GWh storage projects in Latin America.