BlackRock has made a big new bet on a publicly traded solar company.
What’s happening:
- Guelph, Ontario based solar technology and renewable energy company Canadian Solar (NASDAQ: CSIQ) has announced that they have landed $500M USD of capital from BlackRock for their subsidiary Recurrent Energy
- The new capital will come from a fund managed by the Climate Infrastructure arm of BlackRock
Why it matters:
- Solar energy infrastructure and adoption is rapidly accelerating globally as more countries begin to deepen their commitment to renewable energy and net zero emissions
- The fresh funding from BlackRock will accelerate Recurrent Energy’s plans to go from a pure renewable energy project developer to a project developer and owner
By the numbers:
- BlackRock will own 20% of Recurrent Energy through their preferred equity investment
- Canadian Solar will continue to own the majority of Recurrent Energy
- Recurrent Energy currently has financed and developed 9 gigawatts of solar and 3 gigawatt hours of energy storage systems
- Recurrent Energy has renewable energy projects in 6 continents globally
Market reaction:
- Shares of Canadian Solar are up more than +15% following the announcement
Going deeper:
- Canadian Solar has also recently been selected to build out multiple notable battery storage projects in Australia and the United Kingdom
- Canadian Solar currently has two new production facilities under construction in the United States, for both solar cell manufacturing and for solar PV module production
