Recurrent Energy, a Canadian Solar subsidiary, has closed on a tax equity investment commitment with GE unit GE Energy Financial Services for the 100-megawatt Astoria solar power project.
Recurrent Energy also closed a debt facility for the Astoria project, currently under construction in California. Recurrent Energy will be the managing member of the Astoria solar power project and plans to own and operate the facility.
Santander Bank was the coordinating lead arranger of a five member bank club including, NORD/LB, Rabobank, Key Bank, and CIT Bank, which will provide project-level construction debt, a letter of credit facility and a back-leveraged term loan facility, totaling US$260 million.
The Astoria solar power project, located in Kern County, is expected to reach commercial operation in the fourth quarter of 2016 and will utilize 46 sets of GE’s 1500V inverters. The electricity and associated renewable energy credits generated by the facility will be sold under power purchase agreements.
The Astoria project is half of a two project portfolio. The Astoria 2 solar project is expected to close financing before the end of the year.
“GE is a widely respected renewable energy investor and we are proud to begin this partnership for the Astoria project,” said Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar. “It is also a privilege to continue our work with this group of lenders as our team continues a long history of successful solar development in Southern California.”