Recurrent Energy, a subsidiary of Canadian Solar and one of the world’s leading developers and operators of solar and energy storage assets, announced it has closed $825 million in construction financing and tax equity to advance two major renewable energy projects in Maricopa County, Arizona.
The financing will support the Desert Bloom Storage and Papago Solar facilities, both of which form part of Recurrent Energy’s multi-project partnership with Arizona Public Service (APS). The projects are designed to deliver reliable, clean energy to meet Arizona’s growing power demand, as the state continues to experience record-breaking electricity usage.
The financing package includes construction loans from Nord/LB, Mitsubishi UFJ Financial Group, Inc. (MUFG), CoBank, and Siemens Financial Services, with Wells Fargo providing the tax equity component. Desert Bloom Storage will serve as a 600 MWh standalone energy storage facility, while Papago Solar will generate 150 MWac of renewable power. Both projects are under construction and are expected to begin operations in the first half of 2026.
Engineering, procurement, and construction (EPC) for Desert Bloom Storage will be led by Primoris Services Corporation’s Renewable Energy business, while Blattner Energy is handling construction for Papago Solar. Both projects will create hundreds of construction jobs and generate long-term tax revenue for Maricopa County once completed.
The developments also underscore Recurrent Energy’s continued community engagement. The company actively supports local initiatives, including partnerships with Arlington Elementary School, and has established itself as a key contributor to regional energy resilience. The Desert Bloom and Papago projects follow Recurrent’s successful Papago Storage facility, a 1,200 MWh energy storage project launched in July 2025 under a 20-year tolling agreement with APS.
With these projects, Recurrent Energy strengthens its position as a global leader in renewable energy infrastructure, supporting utilities and communities with sustainable, dispatchable power solutions.
KEY QUOTES:
“We are excited to have supported Recurrent Energy on the landmark Desert Bloom Storage and Papago Solar financing. This transaction demonstrates Nord/LB’s commitment to financing best-in-class projects that will deliver clean, reliable power to communities. We look forward to continuing our longstanding partnership with Recurrent Energy and to providing financing solutions in a rapidly evolving market.”
Sondra Martinez, Head of Project Finance-Origination, Nord/LB
“MUFG is pleased to support Recurrent Energy on its latest landmark transaction. Desert Bloom Storage and Papago Solar will help provide the community with reliable, carbon-free energy while enhancing the resiliency of the grid. We look forward to continuing to support Recurrent Energy’s ambitious growth in the renewable energy sector.”
Fred Zelaya, Managing Director of Project Finance, MUFG
“For the third consecutive year, APS set a new peak energy demand record this summer. We’re proud to continue supporting APS with dispatchable energy resources that enhance reliability and meet the needs of their growing customer base. We thank the APS team for their trust as we bring these projects online safely and efficiently. Together with our long-term partners at Nord/LB, MUFG, CoBank, and Siemens Financial Services, we’re building critical infrastructure that strengthens Arizona’s grid and supports the state’s growing economy.”
Ismael Guerrero, Chief Executive Officer, Recurrent Energy
