Canadian Solar Subsidiary Secures $513M for Arizona Energy Storage

TL;DR

CSI subsidiary Recurrent Energy just closed $513M financing for a massive 1,200 MWh battery project in Arizona. Big win for renewables.

AI Summary

Canadian Solar Inc. announced on June 20, 2024, that its subsidiary, Recurrent Energy, has closed $513 million in financing for a 1,200 MWh energy storage project in Arizona. This project is expected to contribute significantly to the region's clean energy infrastructure.

Why It Matters

This significant financing for a large-scale energy storage project highlights the growing investment in renewable energy infrastructure and its critical role in grid stability.

Risk Assessment

Risk Level: low — This filing is an informational report and does not contain new material financial or operational risks for the company.

Key Numbers

• $513M — Financing Closed (For Recurrent Energy's Arizona energy storage project.)
• 1,200 MWh — Energy Storage Capacity (Capacity of the Arizona project.)

Key Players & Entities

• Canadian Solar Inc. (company) — Filer of the report
• Recurrent Energy (company) — Subsidiary that closed financing
• $513 Million (dollar_amount) — Amount of financing closed
• 1,200 MWh (dollar_amount) — Capacity of the energy storage project
• Arizona (location) — Location of the energy storage project
• June 20, 2024 (date) — Date of the report filing
• Shawn (Xiaohua) Qu (person) — Chairman and Chief Executive Officer of Canadian Solar Inc.

FAQ

From the Filing

0001104659-24-073129.txt : 20240620 0001104659-24-073129.hdr.sgml : 20240620 20240620072623 ACCESSION NUMBER: 0001104659-24-073129 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20240620 FILED AS OF DATE: 20240620 DATE AS OF CHANGE: 20240620 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Canadian Solar Inc. CENTRAL INDEX KEY: 0001375877 STANDARD INDUSTRIAL CLASSIFICATION: SEMICONDUCTORS & RELATED DEVICES [3674] ORGANIZATION NAME: 04 Manufacturing IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-33107 FILM NUMBER: 241054063 BUSINESS ADDRESS: STREET 1: 545 SPEEDVALE AVENUE WEST CITY: GUELPH STATE: A6 ZIP: N1K 1E6 BUSINESS PHONE: 416-365-1110 MAIL ADDRESS: STREET 1: 66 WELLINGTON STREET WEST STREET 2: SUITE 4100 CITY: TORONTO STATE: A6 ZIP: M5K 1B7 6-K 1 tm2417296d1_6k.htm FORM 6-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of June 2024 Commission File Number: 001-33107 CANADIAN SOLAR INC. 545 Speedvale Avenue West, Guelph, Ontario, Canada N1K 1E6 (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F þ Form 40-F o CANADIAN SOLAR INC. Form 6-K TABLE OF CONTENTS Signature Exhibit Index Exhibit 99.1 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CANADIAN SOLAR INC. By: /s/ Shawn (Xiaohua) Qu Name: Shawn (Xiaohua) Qu Title: Chairman and Chief Executive Officer Date: June 20, 2024 EXHIBIT INDEX Exhibit 99.1 — Recurrent Energy Closes $513 Million in Financing for 1,200 MWh Energy Storage Project in Arizona EX-99.1 2 tm2417296d1_ex99-1.htm EXHIBIT 99.1 Exhibit 99.1 Recurrent Energy Closes $513 Million in Financing for 1,200 MWh Energy Storage Project in Arizona Papago Storage, the largest energy storage project in Arizona, holds a 20-year tolling agreement with Arizona Public Service Company. GUELPH, ON, June 20, 2024 — Recurrent Energy, a subsidiary of Canadian Solar Inc. ("Canadian Solar") (NASDAQ: CSIQ) and a global developer , owner, and operator of solar and energy storage assets, today announced it has secured $513 million in project financing for its landmark Papago Storage project located in Maricopa County, Arizona. Construction of the 1,200 MWh Papago Storage is slated to commence in the third quarter of 2024, with commercial operations expected to begin in the second quarter of 2025. The project holds a 20-year tolling agreement with Arizona Public Service Company and is expected to create 200 jobs during construction. Following construction, Recurrent Energy will own and operate Papago Storage. The project will dispatch enough power for approximately 244,000 homes for four hours daily, enabling renewable energy to further power Arizona’s growing economy. MUFG and Nord/LB acted as coordinating lead arrangers for the Papago Storage project financing. The financing includes a $249 million construction and term loan, a $163 million tax equity bridge loan, and a $101 million letter of credit facility. Joint lead arrangers for the transaction included Bank of America, CoBank, DNB, Rabobank, Siemens, and Zions. Fred Zelaya, Managing Director of MUFG, commented, “MUFG is pleased to have supported Recurrent Energy on this important project, which will contribute to the transition to a low-carbon economy. This transaction showcases MUFG's expertise and leadership in financing renewable energy and energy storage projects across the U.S. and globally. We look forward to collaborating with Recurrent Energy on future developments.” Sondra Martinez, Managing Director of Nord/LB, s