Recurrent Energy Secures $825 Million Financing for Desert Bloom Storage and Papago Solar Projects

Recurrent Energy, a subsidiary of Canadian Solar Inc. and a global developer, owner, and operator of solar and energy storage assets, announced the closing of $825 million in construction financing and tax equity for its Desert Bloom Storage and Papago Solar projects. The construction financing was provided by Nord/LB, Mitsubishi UFJ Financial Group (MUFG), CoBank, and Siemens Financial Services, while Wells Fargo provided the tax equity.

Both projects are located in Maricopa County, Arizona, and are part of Recurrent Energy’s previously announced multi-project partnership with Arizona Public Service (APS). Desert Bloom Storage is a 600 MWh standalone energy storage facility, and Papago Solar is a 150 MWac solar power plant. Construction is underway for both assets, with operations expected to commence in the first half of 2026.

Sondra Martinez, Head of Project Finance-Origination at Nord/LB, said, “We are excited to have supported Recurrent Energy on the landmark Desert Bloom Storage and Papago Solar financing. This transaction demonstrates Nord/LB’s commitment to financing best-in-class projects that will deliver clean, reliable power to communities. We look forward to continuing our longstanding partnership with Recurrent Energy and to providing financing solutions in a rapidly evolving market.”

Fred Zelaya, Managing Director of Project Finance at MUFG, commented, “MUFG is pleased to support Recurrent Energy on its latest landmark transaction. Desert Bloom Storage and Papago Solar will help provide the community with reliable, carbon-free energy while enhancing the resiliency of the grid. We look forward to continuing to support Recurrent Energy’s ambitious growth in the renewable energy sector.”

Ismael Guerrero, CEO of Recurrent Energy, said, “For the third consecutive year, APS set a new peak energy demand record this summer. We’re proud to continue supporting APS with dispatchable energy resources that enhance reliability and meet the needs of their growing customer base. We thank the APS team for their trust as we bring these projects online safely and efficiently. Together with our long-term partners at Nord/LB, MUFG, CoBank, and Siemens Financial Services, we’re building critical infrastructure that strengthens Arizona’s grid and supports the state’s growing economy.”