Recurrent Energy has secured $513 million in project financing for its 1,200 MWh Papago Storage project, located in Maricopa County, Ariz.
Project construction is slated to commence later this year, with commercial operations expected to begin in 2025.
The project holds a 20-year tolling agreement with Arizona Public Service Company.
Following construction, Recurrent Energy will own and operate the project.
“When we began developing Papago Storage in 2016, the Arizona storage market was in its infancy,” says Ismael Guerrero, CEO of Recurrent Energy.
“Today, Arizona is one of the fastest-growing markets for energy storage in the United States, bolstered by the state’s expanding economy and cost-effective renewable energy resources. Today, we are thrilled to see nearly a decade of planning culminate in the financing of what will be the largest energy storage project in Arizona. We appreciate the continued support from our partners Nord/LB and MUFG in our shared mission to advance the clean energy transition.”
MUFG and Nord/LB acted as coordinating lead arrangers for the project financing. Joint lead arrangers for the transaction included Bank of America, CoBank, DNB, Rabobank, Siemens and Zions.
