The US Department of Energy approved an $861.3 million loan guarantee for the construction of two solar photovoltaic (PV) farms and two standalone battery energy storage systems in Puerto Rico as part of the Biden-Harris administration’s Investing in America agenda.
These projects, located in the municipalities of Guayama and Salinas, are expected to significantly boost clean energy access across the island.
The borrower, Clean Flexible Energy, LLC, is a joint venture managed by The AES Corporation and TotalEnergies Holdings USA, Inc.
Jennifer M. Granholm, US Secretary of Energy, said, “Today’s announcement will help add up to 200 megawatts of solar generation and another 285 megawatts of reliable storage capacity to Puerto Rico’s electric grid to improve the grid’s resilience and help reduce energy costs that have remained too high for too long for too many families—all while enabling the Commonwealth to reach its ambitious climate goals.”
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With the addition of 200 MW of solar energy and 285 MW of battery storage to Puerto Rico’s grid, Project Marahu will supply about 43,000 houses with clean, reasonably priced electricity.
The project seeks to lessen the island’s dependency on fossil fuels and address Puerto Rico’s much higher energy prices by reducing annual emissions by an estimated 2.7 million tons of CO2.
Project Marahu is a component of the Justice40 Initiative of the Biden administration, which aims to provide underprivileged areas with 40% of certain federal investments.
It is anticipated that the project will create 750 construction jobs and over 50 permanent positions, targeting areas most affected by energy insecurity.
The loan guarantee is part of the DOE’s Energy Infrastructure Reinvestment (EIR) program, established under President Biden’s Inflation Reduction Act to repurpose outdated energy infrastructure.
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Additionally, a Community Benefits Plan (CBP) is being developed to ensure that the project directly benefits local communities and workers.
AES has committed to offering programs for capacity-building, job development, and training, especially to women and underrepresented groups in Guayama and Salinas.
Under its Energy Public Policy Act, Puerto Rico aims to achieve 100% renewable energy by 2050.
Project Marahu will be essential to replacing coal-fired plants, cutting emissions, and supporting initiatives to increase energy resilience.