The Canadian Solar unit provides up to $1.41 billion in financing for the European renewable energy business

Recurrent Energy, a unit of Canadian solar technology company Solar CSIQ-Q, said on Thursday it had secured a multi-currency revolving credit facility worth up to 1.3 billion euros ($1.41 billion) from 10 banks.

The loan will be used to build renewable energy projects in several European countries.

Recurrent Energy and participating financial institutions signed the agreement in Seville, Spain.

Why is it important?

Increasing renewable energy efficiency and the development of electric vehicles are expected to make energy storage a priority technology.

The revolving credit facility will provide flexible financing for the construction of solar and battery storage projects in Spain, Italy, the UK, the Netherlands, France and Germany.

Context

As renewable energy spreads across Europe, battery consumption must increase to meet intermittent renewable energy supplies to meet decarbonization goals.

By the numbers

The facility will be available for three years with optional extensions.

It was originally estimated at EUR 674 million, but a potential increase to approximately EUR 1.3 billion was included.

Key quotes

“This agreement reinforces Recurrent Energy’s growth strategy and our transformation into one of the world’s leading independent renewable energy producers and developers,” said Ismael Guerrero, CEO of Recurrent Energy.