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KITCHENER, ON - Recurrent Energy, a subsidiary of Canadian Solar Inc. (NASDAQ: CSIQ), has secured a total of $183 million in financing for its Fort Duncan Storage project in Maverick County, Texas. The project, which is currently under construction, is slated to become operational by summer 2025 to support the Electric Reliability Council of Texas (ERCOT) during periods of peak power demand. According to InvestingPro data, Canadian Solar, with a market capitalization of $659 million, has seen challenging market conditions with its stock declining 32% over the past six months.
The financing package includes a construction and term loan, a tax equity bridge loan, and a letter of credit facility amounting to $112 million, led by Nord/LB. Additionally, a $71 million tax equity partnership was executed with Greenprint Capital. InvestingPro analysis shows the company operates with a significant debt burden, maintaining a total debt of $5.36 billion and a current ratio of 1.06, highlighting the importance of strategic financing decisions.
Ismael Guerrero, CEO of Recurrent Energy, emphasized the significance of the project for Texas’s grid reliability and resilience, especially as the state experiences substantial economic growth and increased demand driven by artificial intelligence technologies.
Nord/LB’s Managing Director, Sondra Martinez, expressed pride in supporting the financing of the Fort Duncan project, noting the creative financing structures and the firms’ shared commitment to the clean energy transition. Greenprint Capital’s Managing Partner, Peter DeFazio, highlighted the project’s potential to enhance grid reliability and generate strong financial returns through strategic clean energy investments.
The Fort Duncan Storage facility will operate on a merchant basis, dispatching power to the ERCOT grid in response to market signals. The project’s two-hour energy delivery cycle is expected to serve the equivalent of up to 66,100 households and will contribute millions of dollars in tax revenue to local community services.
Burns & McDonnell is responsible for the construction of the project, which will employ 75 workers at its peak, and e-STORAGE, a subsidiary of Canadian Solar Inc., is supplying the energy storage systems.
This announcement is based on a press release statement from Canadian Solar Inc. With the company’s revenue showing a 21.68% decline in the last twelve months, investors seeking deeper insights into Canadian Solar’s financial health and growth prospects can access comprehensive analysis through InvestingPro, which offers exclusive ProTips and detailed financial metrics for over 1,400 US stocks.
In other recent news, Qualcomm Incorporated has signed a Power Purchase Agreement with Recurrent Energy, a subsidiary of Canadian Solar Inc., to source renewable energy from a solar photovoltaic project in Spain. This move is part of Qualcomm’s ongoing efforts to reduce its carbon footprint and support clean energy infrastructure. The project is expected to create over 300 jobs during its construction phase, with specialized job training programs also being implemented. Meanwhile, Canadian Solar Inc. announced that its subsidiary, CSI Solar Co., Ltd., will supply a 240 MW/960 MWh battery energy storage system for a project in South Australia. This project, in partnership with Copenhagen Infrastructure Partners, aims to support South Australia’s goal of achieving 100% net renewable energy by 2027. The storage system will help stabilize the grid by storing surplus energy from wind and solar sources. These developments underscore the growing trend of technology companies investing in sustainable energy solutions and highlight their commitment to environmental responsibility.
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