In the realm of electric vehicles (EVs) and battery storage infrastructure, Recurrent Energy, a subsidiary of Canadian Solar, has announced a significant milestone in the renewable energy sector by securing $513 million in financing for Arizona’s largest standalone battery storage project. The project, named Papago Storage, will be developed in Maricopa County, Arizona.

The 1,200 megawatt-hour (MWh) Papago Storage project represents a major advancement in energy storage capabilities for Arizona. The financing package includes a $249 million construction and term loan, a $163 million tax equity bridge loan, and a $101 million letter of credit facility.

Notably, the Papago Storage project has secured a 20-year tolling agreement with Arizona Public Service Company and is projected to create 200 construction jobs with Recurrent Energy retaining ownership and operating the facility upon completion.

Construction is aimed to begin in Q3 2024, with the project expected to come online in Q2 2025. Once operational, Papago Storage will have the capacity to power around 244,000 homes for four hours daily, playing a crucial role in supporting renewable energy integration.

Furthermore, this development arrives amid Canadian Solar’s broader expansion in the renewable energy market. The company recently reported strong Q1 2024 results, with revenues of $1.3 billion and module shipments totaling 6.3 gigawatts. Moreover, Canadian Solar has also set ambitious goals, aiming to operate 4 gigawatts of solar and 2 gigawatt-hours of battery energy storage by 2026.

Ismael Guerrero, CEO of Recurrent Energy, expressed the Papago Storage project’s importance stating, “When we began developing Papago Storage in 2016, the Arizona storage market was in its infancy. Today, Arizona is one of the fastest-growing markets for energy storage in the United States, bolstered by the state’s expanding economy and cost-effective renewable energy resources.”

As the renewable energy landscape continues to evolve with electric energy solutions leading the charge, projects like Papago Storage are set to play a crucial role in managing electrical supply and demand more effectively for all electrical offerings including EVs that will accelerate the transition to electric mobility.

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