Canadian Solar’s wholly-owned subsidiary, Recurrent Energy, has started construction on the 144 MWac Pflugerville solar project located in Travis County, Texas.
In 2018 Recurrent Energy signed a Power Purchase Agreement (PPA) with Austin Energy for the Pflugerville solar project to provide customers of the utility with low-cost solar power for 15 years after the start of service.
This PPA supports the clean energy targets of Austin Energy that commit the utility to cost-effectively reduce pollution, and includes plans to exit their coal-fired power generation by the end of 2022.
Austin Energy serves over 500,000 clients in the City of Austin, as well as several neighboring Travis County and Williamson County areas.
“We are thrilled about this partnership with Recurrent Energy on the Pflugerville solar project. The project not only expands our renewable portfolio and advances our climate protection goals, it is also located near our customer base. The solar project will also deliver affordable energy to our customers and it demonstrates Austin Energy’s continued dedication to fiscal responsibility and environmental leadership. This project is a win-win.”Jackie Sargent, Austin Energy general manager.
Recurrent Energy is further expanding its presence in Texas by partnering with Austin Energy on the Pflugerville solar project. With the expertise and skills to provide tailored renewable energy goods and project configurations for a wide variety of customers, Recurrent Energy’s Texas collaborations to date include vertically integrated utilities, a leading ERCOT load serving entity, and several C&I offtakers.
The Pflugerville solar project is projected to generate permanent long-term employment to sustain the power plant operation and maintenance, as well as more than 350 construction jobs, of which at least 50 percent will be carried out by local employees.
The project would also have a significant economic effect on the local economy by delivering tax revenue to Travis County and the Elgin ISD, totaling nearly $350 million over the project’s lifespan.
When operational, it is estimated that the Pflugerville solar project will produce enough low-cost, renewable energy to power the equivalent of about 25,000 Texas homes.
“This is an incredible accomplishment given the ongoing financing and construction challenges due to the pandemic. It demonstrates the dedication and capabilities of our Recurrent team, both in the tax equity financing and on-the-ground execution, and the resilience of all our partners to overcome the unique challenges together.
“We are pleased to partner again with Austin Energy as we share their commitment to provide low-cost clean energy to customers. We appreciate our trusted partners, such as U.S. Bank, CIT, Nord/LB, Rabobank, and Zions Bank, who helped to bring this project to fruition and thank the local Travis County community for their continued support through the development process.”Dr. Shawn Qu, chairman and CEO of Canadian Solar.
Recurrent Energy recently closed debt and tax equity funding totaling over $234 million to finance the development of the Pflugerville solar project. U.S. Bank provided tax equity funding, and debt financing was given by a bank club headed by CIT Bank, which included Norddeutsche Landesbank, Rabobank, and Zions Bank.
“U.S. Bank provided tax equity funding, and debt financing was given by a bank club headed by CIT Bank, which included Norddeutsche Landesbank, Rabobank, and Zions Bank. We are pleased to work them on this financing and proud to play a continuing role in supporting the expansion of renewable power throughout the U.S.”Mike Lorusso, managing director and group head for CIT’s Power and Energy unit.