The US DOE has approved $861.3 million loan guarantee for clean energy in Puerto Rico
Clean Flexible Energy will use the loan for 200 MW solar PV and 285 MWh storage capacity
These clean energy facilities will help replace coal energy infrastructure and improve grid stability
The US government will support 2 large-scale solar along with battery energy storage systems (BESS), and 2 standalone BESS in Puerto Rico with a $861.3 million loan guarantee to help lower energy costs in the region as the average energy costs here are significantly higher than in the US.
Combined, these represent 200 MW of solar PV, and 285 MW/1,140 MWh of BESS projects, to be located in the Municipalities of Guayama (Jobos), and Salinas. The loan will be provided to Clean Flexible Energy, LLC, an indirect subsidiary of The AES Corporation and TotalEnergies Holdings USA and a joint venture (JV) between the 2 groups.
This solar PV capacity under Project Marahu is estimated to generate 460,000 MWh of clean energy, enough to power close to 43,000 homes. According to the DOE, these projects will help improve Puerto Rico’s grid reliability and energy security.
Both solar PV and storage systems are expected to eventually replace existing fossil fuel based generation and reduce emissions by nearly 2.7 million tons annually.
The US Department of Energy (DOE) will disburse this loan through its Loan Programs Office (LPO). It will help deliver clean, reliable and affordable power to communities here, it added.
The financing is part of the Energy Infrastructure Reinvestment (EIR) program under the Inflation Reduction Act (IRA) and will help replace coal energy infrastructure with clean energy facilities, stated the DOE.
Puerto Rico targets to end all coal-fired generation by 2028, shifting entirely to a 100% renewable energy mix by 2050. An April 2024 study by the National Renewable Energy Laboratory (NREL) claimed that Puerto Rico can achieve this 100% renewable energy goal with the help of utility-scale PV deployment on non-agricultural land. This won’t need any technological breakthroughs (see 100% Renewable Energy Goal For Puerto Rico Achievable).
In August 2024, the DOE opened a $325 million funding opportunity for solar energy facilities and storage installations across Puerto Rico (see North America PV News Snippets: Canadian Solar’s Thomas Koerner At RE+ Manufacturing Conference & More).