Blackrock to Invest $500M in Recurrent Energy
Blackrock, through a fund managed by its climate infrastructure business, has agreed to invest $500 million in Recurrent Energy, a solar and energy storage developer and owner and subsidiary of Canadian Solar Inc.
The preferred equity investment, which is convertible into common stock, represents 20% of the outstanding fully diluted shares of Recurrent Energy on an as-converted basis. Canadian Solar will continue to own the remaining majority shares of Recurrent Energy.
Austin, TX-based Recurrent Energy said the investment will provide additional capital to grow its project development pipeline while executing its strategy to transition from a pure developer to a developer plus long-term owner and operator.
“Recurrent Energy is emblematic of our strategy of investing in leading renewable power generation assets and transition-enabling infrastructure, and we are pleased to make this first investment commitment from the fourth vintage of BlackRock’s Climate Infrastructure fund franchise,” said David Giordano, global head of climate infrastructure and CIO of transition capital, BlackRock,
Recurrent Energy had a development pipeline of 26GW in solar and 55GWh in storage as of the end of September and expects to have 4GW of solar and 2GWh of storage in operation in the U.S. and Europe by 2026.
BlackRock’s investment is the latest in a string of climate change infrastructure measures by the firm, which includes the recent $12.5 billion acquisition of infrastructure investor GIP.
