Recurrent Energy has lined up $695 million for its Cobalt Solar development in Riverside County, giving one of California's large solar projects a fresh infusion of capital as power demand keeps climbing.
When completed, the company said in a press release posted to PRNewsWire that the 330-megawatt project is expected to produce enough electricity each year for about 82,000 homes.
Here's what to know
The news means the Cobalt Solar facility now being built west of Blythe is targeting commercial operation by the end of next year.
Of the $695 million total, roughly $484 million comes from debt arranged by Mitsubishi UFJ Financial Group, Inc. and Nord/LB, and Wells Fargo is contributing another $211 million through a tax equity investment.
Cobalt Solar is rising in Riverside County about 20 miles west of Blythe, and Recurrent Energy said Blattner Energy is handling engineering, procurement, and construction.
More background
The company said Riverside County could collect about $14 million in property tax revenue from the project, adding a local economic benefit beyond the added power supply.
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The companies behind the new funding touted the benefits for clean energy generation in the state. That can help build momentum for solar nationwide, and help address rising demand for energy that is being driven by data centers and other factors.
"The closing reflects the strength of our partnership and our shared commitment to advancing reliable clean energy infrastructure," Sondra Martinez, managing director at Nord/LB, said in the release.
Leaders from both Wells Fargo and Nord/LB cited enduring partnerships with Recurrent Energy in their comments in the press release.
"We are pleased to support Recurrent Energy with tax equity financing for the Cobalt Solar Project and are proud to continue our long-standing relationship as they expand their renewable energy activity in California," declared Jordan Newman of Wells Fargo Renewable Energy & Environmental Finance.
What's being done?
With the funding in place, Recurrent Energy says work is moving ahead, and the plant remains scheduled to begin operating in late 2027. That means it could contribute to the state's already impressive solar energy generation soon.
Recurrent Energy put the deal together with construction and term borrowing, a tax equity bridge loan, and a letter of credit facility, while Wells Fargo supplied the tax equity investment.
"We are thrilled to close the project financing and ramp up construction of Cobalt Solar," Dylan Marx, CEO of Recurrent Energy, commented in the release. "This project represents a significant addition to the U.S. energy landscape and will contribute meaningfully to meeting the country's growing electricity demand."
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