Recurrent Energy secures $160 million for Louisiana solar project

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Recurrent Energy, a subsidiary of Canadian Solar, secured $160 million in project financing for its 98 MW Bayou Galion Solar project, in Northeast Louisiana.

Microsoft Corporation agreed to purchase 100% of the energy and renewable energy credits produced by Bayou Galion Solar to support its goal of being carbon negative by 2030. The project is currently under construction and is expected to be operational by fall 2024.

The Bayou Galion project is located on 1,080 acres in Morehouse Parish, Louisiana and is expected to generate enough electricity to power the equivalent of approximately 20,500 homes. Recurrent estimates the project will employ 300 people during construction. The company said it is committed to supporting local community organizations in Morehouse Parish through donations and sponsorships, in addition to the increased tax revenue for Morehouse Parish public services.

Recurrent Energy began development of Bayou Galion Solar in 2018 and started construction in December 2023. Primoris Renewables Energy, Inc. is the engineering, procurement, and construction (EPC) partner. Once construction is completed, Recurrent Energy will be the owner and operator.

Mitsubishi UFJ Financial Group, Inc. acted as Coordinating Lead Arranger for the financing of the Recurrent project.

Louisiana has lagged far behind other states in its adoption of solar, one reason being the lack of a renewable portfolio standard. As of 2023 Louisiana ranked 39th in solar installed, with the state generating 0.59% of its electricity from the sun. There are currently several large utility-scale solar projects under construction including the Oxbow Solar project, which will be the largest in the state at 345 MW.

Recurrent Energy reports that it has built approximately 9 GW of solar and 3 GWh of battery storage power plants across six continents since 2009. As of Q4 2023, Recurrent Energy had a global development pipeline of 26 GW in solar and 55 GWh in storage, of which 13 GW and 12 GWh respectively are projects with interconnections. The company anticipates having 4 GW of solar and 2 GWh of storage in operation in the U.S. and Europe by 2026.

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