DOE Approves $72.8 Million Loan Guarantee for Tribal Clean Energy Microgrid Project in California

The US Department of Energy (DOE) approved a $72.8 million loan guarantee in line with the Biden-Harris Administration’s Investing in America agenda.

This fund will help build a microgrid consisting of solar power and long-term energy storage on the tribal territory of the Viejas Band of Kumeyaay Indians in Alpine, California.

The project is a step toward clean energy infrastructure for Tribal Nations and is funded by grants from the California Energy Commission, investments from US Bancorp Impact Finance, and Starbucks.

In partnership with the DOE’s Loan Programs Office (LPO), the project aims to establish a dependable utility-scale renewable energy generation and storage infrastructure.

This will involve installing a 15 MW photovoltaic solar generation system and a 70 megawatt-hour (MWh) battery long-duration energy storage system.

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Jennifer M. Granholm, the US Secretary of Energy, said, “When President Biden and Vice President Harris say that every community deserves the opportunity to benefit from our clean energy future, they mean it.”

She added, “Thanks to game-changing new funding from the Investing in America agenda, DOE is making a first-ever announcement through our Tribal Energy Financing Program—reinforcing this Administration's commitment to helping build stronger, more resilient Tribal and Indigenous communities.”

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The microgrid’s long-term power purchase agreement (PPA) will enable the Viejas Band to obtain renewable electricity for various commercial ventures, ultimately leading to cost savings that can be reinvested in infrastructure and community support.

President Biden's Justice40 Initiative, which attempts to guarantee that 40% of federal investment benefits underprivileged areas, including Federally Recognized Tribes, is in line with the initiative, which is anticipated to generate employment possibilities.