The US Department of Energy (DOE) has made a groundbreaking announcement, with plans to invest $1.2 billion in financing to replace Puerto Rico’s fossil fuel plants with solar and battery storage by 2032. This initiative is a significant step towards transitioning to clean and renewable energy sources, reducing carbon emissions, and enhancing the resilience of Puerto Rico’s energy grid.
The DOE’s Loan Programs Office (LPO) has revealed two conditional commitments and one loan closing to power producers in Puerto Rico, with each project supporting the Puerto Rico Electric Power Authority. The financing includes a $584.5 million loan guarantee to Convergent Energy for a 100 MW solar farm with a 55 MW battery energy storage system in Coamo, along with additional BESS installations in Caguas, Peñuelas, and Ponce.
Furthermore, there is a conditional commitment for a loan guarantee of up to $133.6 million to Infinigen for a 32.1 MW solar farm with integrated battery energy storage systems in Yabucoa. Additionally, a conditional commitment of up to $489.4 million has been made to Pattern Energy for stand-alone BESS installations in Arecibo and Santa Isabel, along with a solar farm with an integrated BESS in Arecibo.
These projects, if finalized, will more than double LPO’s support for utility-scale solar generation and battery energy storage in Puerto Rico. The LPO offers low-cost financing and a thorough due diligence process, providing valuable resources for Puerto Rico as it aims to build an affordable, reliable, and clean energy system. Given the challenges of imported fuel reliance, tropical storms, and aging infrastructure, Puerto Ricans currently face high energy costs while consuming only a fraction of the energy compared to the US per capita.
The LPO’s previous loan to Project Marahu, expected to add over 200 MW of solar and up to 285 MW of energy storage to Puerto Rico’s grid, closed in October 2024. Additionally, through the September 2023 partial loan guarantee for Project Hestia, the LPO supports rooftop solar and battery storage installations in Puerto Rico, with a commitment to allocate a portion of installations to homeowners in the region.
As part of its procurement plan, the Puerto Rico Electric Power Authority aims to install 1,500 MW of battery storage and mandates a minimum storage capacity for each utility-scale solar project. The existing energy storage systems in Puerto Rico are operational daily, contributing to the overall grid stability and resilience.
With the combined financing for these projects, the LPO supports over 100% of the capacity targeted by the Puerto Rico Electric Power Authority in its initial request for energy storage project proposals. This marks a significant milestone in the transition towards clean and sustainable energy sources in Puerto Rico.
In conclusion, the DOE’s commitment to financing solar and battery storage projects in Puerto Rico signifies a crucial step towards a more sustainable and resilient energy future for the region. By reducing reliance on fossil fuels, increasing renewable energy capacity, and enhancing grid stability, these initiatives will benefit both the environment and the residents of Puerto Rico in the long term.
