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BlackRock investing $500M in renewables developer Recurrent Energy

Illustration of a solar panel with shapes and money.

Illustration: Gabriella Turrisi/Axios

BlackRock announced an agreement to invest $500 million in Recurrent Energy, a division of Canadian Solar that develops large solar and energy storage projects.

Why it matters: The deal underscores BlackRock's effort to ramp up its spending on green energy.

Details: BlackRock's Climate Infrastructure division is acquiring preferred equity in Recurrent, convertible into a 20% stake.

  • Recurrent parent company Canadian Solar, listed on the New York Stock Exchange, will retain a majority of the business.
  • The deal encompasses projects in North America, Latin America, Europe, Australia, South Korea and Taiwan.

State of play: The announcement comes less than two weeks after BlackRock announced a $12.5 billion agreement to acquire Global Infrastructure Partners, a move BlackRock said is aimed at expanding its investment in large sustainability assets such as grid-scale wind and solar.

Zoom in: BlackRock's investment in Recurrent will fund the developer's project pipeline as well as its planned transition from simply building energy projects to holding onto and operating them.

  • The Austin-based company expects to be operating 4 GW of solar and 2 GWh of storage in the U.S. and Europe by 2026.
  • As of last fall, it had 26 GW of solar and 55 GWh of storage in development.

Of note: The acquisition is subject to regulatory approval.

Be smart: Recurrent Energy is different than Recurrent Auto, a Seattle startup that certifies EV batteries.

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