Recurrent Energy Secures $160 Mn For Solar Project, Microsoft as Customer

Recurrent Energy, a subsidiary of Canadian Solar Inc., and a global developer and owner of solar and energy storage assets, announced that it has secured $160 million in project financing for its 127 MWdc Bayou Galion Solar project, located in Northeast Louisiana.

Recurrent Energy said that the project is currently under construction and is expected to be operational by fall 2024.

Microsoft Corporation will purchase 100 percent of the energy and renewable energy credits produced by Bayou Galion Solar to support its goal to be carbon negative by 2030, said Recurrent Energy.

The official statement held that the project will significantly expand the amount of renewable energy capacity installed in Louisiana. Mitsubishi UFJ Financial Group, Inc acted as Coordinating Lead Arranger for the financing.

“MUFG is very pleased to support Recurrent Energy on this important project and to help Microsoft meet its climate objectives,” said Fred Zelaya, Managing Director, Project Finance Americas at MUFG.

Recurrent Energy began development of Bayou Galion Solar in 2018 and commenced construction in December 2023. Primoris Renewables Energy is providing the engineering, procurement, and construction (EPC) services. Once construction is completed, Recurrent Energy will own and operate the project as a part of its commitment to growing the number of renewable energy projects in its operating portfolio.

Ismael Guerrero, CEO of Recurrent Energy, said, “We are very pleased to announce the successful close of project financing and PPA signing for Bayou Galion Solar in Louisiana. Bayou Galion Solar extends our relationship with our esteemed partners at MUFG and establishes a new relationship with Microsoft, one of the world’s largest renewable energy power buyers.”

Renewable Energy in Louisiana

At the end of September 2023, Louisiana had 145 MW of operating wind, solar, and energy storage capacity. According to the Solar Energy Industry Association, USA, the utility-scale solar installations have rise by over 15-fold since 2013. In this period, the generation capacity of USA rose from 6,626 megawatts to 98,907 megawatts in 2023.

Louisiana currently holds the 38th position in terms of the size of its solar energy sector. However, according to the Solar Energy Industries Association (SEIA), the state is poised to bolster its solar capacity significantly. Projections indicate that Louisiana will incorporate over 3,000 megawatts of solar energy within the next five years, propelling it to the 19th rank in this sector.