Recurrent Energy has closed a construction financing for an energy storage project in Arizona. Meanwhile, Cypress Creek Renewables has reached financial close for its solar-plus-storage project in Colorado.
Recurrent Energy closes on US$825 million construction financing
Subsidiary of Canadian Solar, Recurrent Energy, has closed US$825 million in construction financing and tax equity for its Desert Bloom Storage and Papago Solar facilities in Arizona, US.
Nord/LB, Mitsubishi UFJ Financial Group (MUFG), CoBank, and Siemens Financial Services arranged the construction financing, while Wells Fargo supplied the tax equity.
Desert Bloom Storage and Papago Solar, both situated in Maricopa County, are included in Recurrent Energy’s earlier announced multi-project partnership with utility Arizona Public Service (APS).
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Desert Bloom Storage is a standalone battery energy storage system (BESS) facility with a capacity of 600MWh, while Papago Solar is a 150MWac solar power plant. Both projects are under construction and are scheduled to start operations in the first half of 2026.
Primoris Services Corporation’s Renewable Energy division serves as the engineering, procurement, and construction (EPC) provider for Desert Bloom Storage, while Blattner Energy is responsible for constructing Papago Solar.
In July, Recurrent began commercial operations of its 1,200MWh Papago Storage facility. Papago Storage has a 20-year tolling agreement with APS.
The Papago Storage tolling agreement was signed in 2023 and originates from APS’s All Resource request for proposal (RFP) conducted in May 2022, which sought 1GW-1.5GW of resources, including 800MW of renewables.
Recurrent highlights its engagement with Maricopa County residents, supporting local organisations like Arlington Elementary School.
In the Q1 2025 financial results for Canadian Solar and its battery storage arm, E-storage, the company stated that it expects to ship between 7GWh and 9GWh this year, with the final figure dependent on trade policy developments.
Recurrent Energy’s business relies on three main sources: electricity sales, asset sales, and operations & maintenance (O&M) services. The company states that it generates investment in operational assets through the sale of solar PV and battery storage development assets, which then produce electricity sold in stable currency markets.
Canadian Solar announced that Recurrent Energy’s battery storage development pipeline reached 75.7GWh by the end of Q1. This includes 1.9GWh of projects under construction, 7.9GWh of contracted backlog, and approximately 66GWh in advanced or early-stage development.
Cypress Creek Renewables reaches financial close on solar-plus-storage project in Colorado
Developer Cypress Creek Renewables has reached financial close of its Sundance Solar and Energy Storage hybrid project in Elbert County, Colorado.
The project will feature 75MWac of solar capacity paired with a 50MW/200MWh BESS.
MUFG acted as the coordinating lead arranger for around US$190 million in construction financing, with BNP Paribas, DNB Bank ASA, and Santander joining the effort. Fifth Third Bank is acting as the project’s tax equity investor.
Construction began in July of this year with McCarthy Building Companies serving as the EPC contractor.
Cypress Creek states that the project is expected to create up to 250 construction jobs and generate more than US$9.5 million in property tax revenue over the project’s anticipated 40-year operational life.
The company has also created a community working group in the county to help allocate US$300,00 in direct community investment.
Cypress Creek, based in California, develops, finances, operates, and owns utility-scale and distributed solar and storage facilities. Since 2021, the company has been owned by the global private equity firm EQT.
The company’s first standalone BESS, the 100MW Brazos Bend project in Texas, became operational in July 2024. Cypress Creek reports that it has commercialised 12GW of solar projects and owns over 2GW of solar capacity, along with a pipeline of 20GW of solar and storage projects.
In March, Cypress Creek received a US$133 million financing from First Citizens Bank for the Destiny Storage Project, another standalone BESS project in Harris County, Texas.
This summer, the Governor of Washington State postponed final approval of a hybrid BESS facility being developed by Cypress Creek to allow the indigenous Yakama Nation more time to comment on certain aspects of the project’s design.
The project in southern Klickitat County, Washington, is planned to include a 160MW solar farm along with a 63MW lithium iron phosphate (LFP) BESS.
