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Recurrent Energy signs agreement with Arizona Public Service Copmany for BESS project

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Energy Global,

Canadian Solar Inc. has announced that Recurrent Energy, its wholly-owned subsidiary for global project development and power services, secured a 20-year tolling agreement with Arizona Public Service Company (APS) for Papago Storage, a 1200 MWh energy storage project under development in Maricopa County, Arizona. Construction of Papago Storage is expected to begin in 3Q24 with planned commercial operation in 2Q25. Once operational, Papago Storage will be the largest standalone energy storage project in Arizona.

The tolling agreement award for Papago Storage comes as Arizona, and states across the US, face record electricity demand. The energy storage capacity provided by Papago Storage will complement Arizona's growing solar energy capacity and will also help the state meet surging electricity demand.

Recurrent Energy is one of the world's largest and most geographically diversified utility scale solar and battery storage platforms, with a track record of delivering 9 GW of solar and 3 GWh of battery storage power plants now in operation across six continents. In 2022, Recurrent Energy brought online 2 GWh of energy storage in the US, making it one of the largest energy storage developers in the country.

Dr Shawn Qu, Chairman and CEO, Canadian Solar, commented: “This landmark project – Papago Storage – will give Arizonans more renewable energy every day. Recurrent Energy is delighted that Arizona Public Service selected Papago Storage via its rigorous competitive procurement process to support its 1.3 million customers' growing need for affordable and reliable energy storage, and we look forward to growing our partnerships with APS and other utilities that are adding record amounts of energy storage in their service areas.”

Recurrent Energy began developing Papago Storage in 2016. Following construction, Recurrent Energy will own and operate Papago Storage, as a part of its objective to expand its asset ownership. Once operational, the project will dispatch enough power for approximately 244 000 homes for four hours every day.

The tolling agreement award for Papago Storage resulted from APS's All Resource request for proposal conducted in May 2022. APS sought 1 – 1.5 GW of resources, including up to 800 MW of renewable energy.



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