The U.S. Department of Energy (DOE) Loan Programs Office (LPO) has made a significant announcement today, as it has issued a conditional commitment for a loan guarantee of up to $861.3 million to Clean Flexible Energy, LLC. This loan guarantee will fund the construction of two solar photovoltaic (PV) farms with battery storage and two standalone battery energy storage systems in Puerto Rico. The facilities will be strategically located in Guayama (Jobos) and Salinas, aiming to provide clean, reliable, and cost-effective power across Puerto Rico.
This initiative, backed by President Biden’s Investing in America agenda, is expected to create around 750 construction jobs and over 50 full-time positions once operational. Furthermore, it underscores the Biden-Harris Administration’s steadfast dedication to revitalizing and modernizing Puerto Rico’s electricity grid.
The combined capacity of the project includes 200 MW of solar PV and up to 285 MW (1,140 MWh) of standalone BESS. Annually, the solar PV installations will generate approximately 460,000 MWh of energy, sufficient to power roughly 43,000 homes, thereby enhancing Puerto Rico’s grid stability and energy security. The integration of solar and battery resources will enable maximum energy production and grid stability, ensuring continued energy supply during adverse weather conditions.
Project Marahu, as the initiative is called, is projected to replace existing fossil fuel-based generation, reducing emissions by nearly 2.7 million tons of CO2e annually, equivalent to the emissions of approximately 533,000 gasoline-powered vehicles. This project is essential in advancing Puerto Rico’s energy resilience and affordability goals, aiming to replace aging fossil fuel power plants and enhance renewable energy generation, subsequently improving grid resilience.
In alignment with President Biden’s Justice40 Initiative, which emphasizes equitable distribution of benefits to disadvantaged communities, Project Marahu aims to alleviate Puerto Rico’s high energy costs. The project is expected to benefit the island as a whole by lowering energy expenses through widespread solar deployment.
As part of the Biden-Harris Administration’s commitment to fostering an inclusive clean energy future, LPO borrowers are required to develop a comprehensive Community Benefits Plan, ensuring community and labor engagement, improving resident well-being, and upholding labor standards throughout the project’s lifecycle.
Project Marahu stands out as a beacon of hope for Puerto Rico, offering clean, affordable electricity that will replace the output of diesel and coal plants, thereby reducing harmful pollution. The project aims to contribute to Puerto Rico’s goal of achieving 100% clean energy by 2050, providing energy storage benefits crucial to this objective.
The financing for Project Marahu will be facilitated through the Energy Infrastructure Reinvestment program, supporting projects that revamp, repurpose, or replace energy infrastructure to lower emissions and create new job opportunities. This initiative aligns with Puerto Rico’s Energy Public Policy Act, mandating the phaseout of coal-fired energy generation by 2028 and transitioning to a fully renewable energy mix by 2050.
The announcement from the DOE reinforces its commitment to fortify Puerto Rico’s grid modernization and energy resiliency. Through the establishment of the Puerto Rico Energy Resilience Fund, the DOE aims to drive investments in renewable and resilient energy infrastructure in Puerto Rico, supporting the island’s transition to a sustainable, renewable energy grid by 2050.
However, it is important to note that while the DOE’s conditional commitment signals its intention to finance the project, certain technical, legal, environmental, and financial conditions must be met before definitive financing agreements are signed and funding is authorized for the project’s implementation.
These are some news articles from the U.S. Department of Energy about the power grid and a conditional commitment for building utility-scale solar energy projects. More information can be found on the Department of Energy’s website at www.energy.gov.