The U.S. Department of Energy, through its Loan Programs Office, on Oct. 15 announced a $861.3 million loan guarantee to finance the construction of two solar photovoltaic farms equipped with battery storage and two standalone battery energy storage systems in Puerto Rico.
The facilities will be located in the municipalities of Guayama (Jobos) and Salinas and will help deliver power to communities throughout Puerto Rico.
The borrower is Clean Flexible Energy, LLC, an indirect subsidiary of The AES Corporation and TotalEnergies Holdings USA, Inc. that is managed under a joint venture agreement between the two companies.
Collectively, the project -- known as Project Marahu -- comprises 200 MW of solar PV and up to 285 MW (1,140 MWh) of stand-alone BESS capacity.
Annually, the solar PV installations will produce approximately 460,000 MWh of energy and enhance Puerto Rico’s grid reliability and energy security, the DOE said.
The co-location of the new solar and battery resources will help maximize the project’s energy production and improve grid stability. Battery storage will allow the project to continue to provide energy to residents even during adverse weather conditions, it said.
LPO borrowers are expected to develop and ultimately implement a comprehensive Community Benefits Plan “that ensures meaningful community and labor engagement, improves the well-being of residents and workers, and incorporates strong labor standards during construction, operations, and throughout the life of the loan guarantee,” DOE said.
For the Marahu project, the CBP is being finalized and will be released to the public soon.
The Project Marahu team includes two community relations managers who are from the Guayama community and a group of local community engagement advisors. Local labor leaders will be engaged for the construction and operations planning at both the Jobos and Salinas sites.
AES, through existing facilities operating in Puerto Rico, has forged partnerships with community development non-profits and minority-serving educational institutions.
AES has also worked with a variety of organizations to lead capacity-building and entrepreneurship programs for Guayama and Salinas community members and has formalized programs offering targeted training and career development opportunities for women.
This project is financed through the Energy Infrastructure Reinvestment (EIR) program under Title 17 Clean Energy Financing Section 1706. Created by President Biden’s Inflation Reduction Act, EIR can finance projects that retool, repower, repurpose, or replace energy infrastructure that has ceased operations or enable operating energy infrastructure to avoid, reduce, utilize, or sequester air pollutants or greenhouse gas emissions.
In support of President Biden’s efforts to support economic revitalization in energy communities, Project Marahu will assist in replacing coal energy infrastructure with clean energy facilities, DOE said.
The Puerto Rico Energy Public Policy Act (Act 17) requires Puerto Rico’s utility to cease all coal-fired energy generation by 2028 and shift to a 100% renewable energy mix by 2050.
The announcement is one of many actions DOE has taken to help strengthen Puerto Rico’s grid modernization and energy resiliency.
In December 2022, President Biden authorized $1 billion for the establishment of the Puerto Rico Energy Resilience Fund (PR-ERF), which is administered by DOE’s Grid Deployment Office.
The PR-ERF is a separate federal funding source to drive key investments in renewable and resilient energy infrastructure in Puerto Rico.
