Canadian Solar receives $165m loan from Santander for Mustang solar plant

Banco Santander has agreed a $165 million construction and tax equity loan for Recurrent Energy, the San Francisco-headquartered subsidiary of Chinese solar company Canadian Solar for the development of the 100 MW Mustang solar plant in central California.

The solar project will be owned and operated by Recurrent Energy once it is completed and connected to the grid by the fourth quarter of 2016. Blattner Energy is acting as EPC on the project, and a unit of U.S. Bancorp called US Bancorp Community Development Corporation (USBCDC) has already confirmed that it will purchase the tax credits generated by the plant under a long-term contract.

According to Canadian Solar, the Mustang solar plant will generate enough clean solar electricity to meet the power needs of 28,000 local households. It will cover approximately 1,000 acres of land in California’s Kings County, and will deliver an economic and employment boost to the region. Believes USBDCD VP, Adam Altenhofen. The US Bancorp division has invested $101 million in renewable energy tax credit equity into the project.

"By supporting renewable energy projects like the Mustang facility, we can help sustain the environment and stimulate the economy," said Santander’s head of project finance North America, Jorge Camina. "Financing Canadian Solar and Recurrent Energy in this milestone project demonstrates our commitment to supporting leading sponsors of renewable energy projects."

Shawn Qu, Canadian Solar’s CEO and chairman, added that the process of securing financing for the Mustang solar project represents a milestone in the company’s ongoing execution of its solar pipeline, and is representative of Canadian Solar’s "ability to develop consistently bankable solar projects."

The Tier-1 Chinese company recently won big in the Brazilian solar auction, which awarded Canadian Solar five projects worth a combined 185 MW in the growing Brazilian market.