Recurrent Energy to Bolster its Italian Clean Energy Portfolio with €50 Million Euro Facility from the European Investment Bank

Rhea-AI Summary

Recurrent Energy, a subsidiary of Canadian Solar Inc. (NASDAQ: CSIQ), has secured a €50 million loan from the European Investment Bank (EIB) to support the development and construction of a solar energy portfolio in Italy. This 5-year term facility aligns with the EIB's priorities on Renewable Energy, Climate Action, and Social and Economic Cohesion.

The transaction strengthens Recurrent Energy's position in Italy's clean energy transition and supports Europe's goals for reduced emissions and increased energy independence. Recurrent Energy has been expanding its presence in Italy since 2017 and recently inaugurated a 51 MW solar PV project in Sicily. The company currently has a pipeline in EMEA that includes 10.3 GWp in Solar PV and 32.8 GWh in battery energy storage.

Positive

• Secured €50 million loan from European Investment Bank
• Strengthens position in Italy's clean energy transition
• Recently inaugurated 51 MW solar PV project in Sicily
• Pipeline in EMEA includes 10.3 GWp in Solar PV and 32.8 GWh in battery energy storage

Negative

• None.

Insights

Financial Analyst

The €50 million loan from the European Investment Bank (EIB) is significant for Recurrent Energy's financial health and growth strategy. By securing this facility, Recurrent Energy demonstrates strong financial backing and creditworthiness, which can improve its standing with other financial institutions and investors. The loan will enhance the company's ability to develop and construct solar projects in Italy, aligning with European sustainability goals. This financial injection can lead to increased revenue streams and accelerated project timelines, offering potential for higher returns on investment. Furthermore, the association with a reputable institution like the EIB can enhance investor confidence and potentially lead to an upward movement in Canadian Solar Inc.'s (NASDAQ: CSIQ) stock price.

Energy Market Research Analyst

This financing deal is highly impactful for the clean energy sector in Italy and Europe. With the EIB's focus on renewable energy, climate action and economic cohesion, the loan supports projects that are critical for Europe's energy transition. The development of new solar assets will contribute to Italy's renewable energy capacity and help meet the EU's ambitious emissions reduction targets. For Recurrent Energy, this loan solidifies its position as a major player in the European renewable energy market. Investors should note that this strategic move may lead to long-term stability and growth, as the company leverages the financial support to scale its operations and infrastructure. This could translate to sustained growth and improved market share in the renewable energy sector.

Tech Expert

The technological implications of this loan are also noteworthy. Developing new solar projects and expanding battery energy storage capabilities require significant capital investment and technological advancements. The €50 million from the EIB will enable Recurrent Energy to incorporate state-of-the-art technology in their projects, enhancing efficiency and output. This not only increases the company's competitive edge but also fosters innovation within the renewable energy sector. For investors, this is a positive indicator of the company's commitment to remaining at the forefront of technological advancements, which can lead to better project performance and higher returns. The focus on battery storage is particularly important, as it addresses one of the key challenges in renewable energy—intermittency—thereby ensuring a more reliable energy supply.

GUELPH, ON, July 24, 2024 /PRNewswire/ -- 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, announced today the successful financial close on a €50 million loan from the European Investment Bank ("EIB"). The facility will support the development and construction of a solar energy portfolio in Italy.

The loan, a €50 million 5-year term facility, aligns with the EIB's lending priorities on Renewable Energy, Climate Action, and Social and Economic Cohesion. This transaction strengthens Recurrent Energy's leadership in Italy's clean energy transition, enhancing the country's renewable energy capacity and supporting Europe's goals for reduced emissions and increased energy independence.

Ismael Guerrero, CEO of Recurrent Energy, commented, "We are excited to extend our banking relationship with such an entity as the EIB. This transaction is a pivotal step toward our goal of becoming one of the largest Independent Power Producers (IPPs) globally. It aligns with our commitment to fostering a more sustainable economy in Europe and beyond. We look forward to building a long-term relationship with the EIB to support our mutual objectives."

Recurrent Energy has been expanding its presence in Italy since 2017. It has recently inaugurated its 51 MW solar PV project Anguillara located in Marsala, Sicily, Italy, making the country a reference point for its projects in the rest of Europe. Recurrent Energy currently has a pipeline in EMEA that includes 10.3 GWp in Solar PV and 32.8 GWh in battery energy storage.

About Recurrent Energy

Recurrent Energy is one of the world's largest and most geographically diversified utility-scale solar and battery energy storage project development, ownership, and operations platforms. With an industry-leading team of in-house energy experts, Recurrent Energy is a wholly owned subsidiary of Canadian Solar Inc. and functions as Canadian Solar's global development and power services business. Additional details are available at http://www.recurrentenergy.com/.

About Canadian Solar Inc.

Canadian Solar was founded in 2001 in Canada and is one of the world's largest solar technology and renewable energy companies. It is a leading manufacturer of solar photovoltaic modules, provider of solar energy and battery energy storage solutions, and developer of utility-scale solar power and battery energy storage projects with a geographically diversified pipeline in various stages of development. Over the past 23 years, Canadian Solar has successfully delivered over 125 GW of premium-quality, solar photovoltaic modules to customers across the world. Likewise, since entering the project development business in 2010, Canadian Solar has developed, built, and connected over 10 GWp of solar power projects and 3.3 GWh of battery energy storage projects across the world. Currently, the Company has over 1.2 GWp of solar power projects in operation, 6.5 GWp of projects under construction or in backlog (late-stage), and an additional 19.8 GWp of projects in advanced and early-stage pipeline. In addition, the Company has 600 MWh of battery energy storage projects in operation and a total battery energy storage project development pipeline of around 56 GWh, including approximately 4.3 GWh under construction or in backlog, and an additional 51.6 GWh at advanced and early-stage development. Canadian Solar is one of the most bankable companies in the solar and renewable energy industry, having been publicly listed on the NASDAQ since 2006. For additional information about the Company, follow Canadian Solar on LinkedIn or visit www.canadiansolar.com.

Safe Harbor/Forward-Looking Statements

Certain statements in this press release are forward-looking statements that involve a number of risks and uncertainties that could cause actual results to differ materially. These statements are made under the "Safe Harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by such terms as "believes," "expects," "anticipates," "intends," "estimates," the negative of these terms, or other comparable terminology. Factors that could cause actual results to differ include general business, regulatory and economic conditions and the state of the solar and battery storage market and industry; geopolitical tensions and conflicts, including impasses, sanctions and export controls; volatility, uncertainty, delays and disruptions related to the COVID-19 pandemic; supply chain disruptions; governmental support for the deployment of solar power; future available supplies of high-purity silicon; demand for end-use products by consumers and inventory levels of such products in the supply chain; changes in demand from significant customers; changes in demand from major markets, such as Japan, the U.S., China, Brazil and Europe; changes in effective tax rates; changes in customer order patterns; changes in product mix; changes in corporate responsibility, especially environmental, social and governance ("ESG") requirements; capacity utilization; level of competition; pricing pressure and declines in or failure to timely adjust average selling prices; delays in new product introduction; delays in utility-scale project approval process; delays in utility-scale project construction; delays in the completion of project sales; continued success in technological innovations and delivery of products with the features that customers demand; shortage in supply of materials or capacity requirements; availability of financing; exchange and inflation rate fluctuations; litigation and other risks as described in Canadian Solar's filings with the Securities and Exchange Commission, including its annual report on Form 20-F filed on April 26, 2024. Although Canadian Solar and Recurrent Energy believe that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance, or achievements. Investors should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and Canadian Solar and Recurrent Energy undertake no duty to update such information, except as required under applicable law.

Canadian Solar Inc. Investor Relations Contact

Wina Huang
Investor Relations
Canadian Solar Inc.
investor@canadiansolar.com

Recurrent Energy Media Inquiries
Inés Arrimadas 
Recurrent Energy
comms@recurrentenergy.com 

 

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SOURCE Canadian Solar Inc.

FAQ

What is the value of the loan Recurrent Energy received from the European Investment Bank?

Recurrent Energy received a €50 million loan from the European Investment Bank.

What is the purpose of the loan Recurrent Energy (CSIQ) received from EIB?

The loan will support the development and construction of a solar energy portfolio in Italy.

What is the term of the loan facility provided by EIB to Recurrent Energy?

The loan facility provided by EIB to Recurrent Energy is a 5-year term facility.

What is the size of Recurrent Energy's recently inaugurated solar PV project in Italy?

Recurrent Energy recently inaugurated a 51 MW solar PV project called Anguillara in Marsala, Sicily, Italy.

What is the size of Recurrent Energy's pipeline in the EMEA region as of July 2024?

Recurrent Energy's pipeline in EMEA includes 10.3 GWp in Solar PV and 32.8 GWh in battery energy storage.