Image: Convergent Energy
The US Department of Energy (DOE) today announced a $1.2 billion grant to replace Puerto Rico's fossil fuel plants with solar and battery storage by 2032.
The DOE's Office of Loan Programs has announced two conditional commitments and one moratorium on electric power producers in Puerto Rico. Each supports a project that has a contract with the Puerto Rico Electric Power Authority. Announcements include:
- Closing of a loan guarantee of 584.5 million rands from Convergent Energy subsidiaries to finance a 100 MW solar farm with a 55 MW battery storage system (55 MWh) in the municipality of Coamo and the installation of BESS in the municipality of Caguas (25MW /100MWh ), Peñuelas (100MW/400MWh), and Ponce (up to 100MW/400MWh)
- A conditional loan guarantee commitment of up to $133.6 million to Infinigen's subsidiary for a 32.1 MW solar farm with a combined 14.45 MW (4.76 MWh) BESS, and a 50 MW (200 MWh) standalone BESS expansion for the municipality from Yabucoa
- Conditional loan guarantee commitment of up to $489.4 million to Pattern Energy's subsidiary for three independent BESS in the municipalities of Arecibo (50 MW/200 MWh), and Santa Isabel (50 MW /200 MWh and 80 MWh/ 320 MW), and a 70 MW solar farm with integrated BESS in the municipality of Arecibo.
When all is completed, these projects could more than double the LPO's support for solar energy generation and battery energy storage in Puerto Rico.
LPO offers cheap financing and a strong due diligence process, making it a valuable resource for Puerto Rico as it works to rebuild an affordable, reliable, and clean energy system. As a result of reliance on imported fuel, the constant threat of tropical storms, and underdeveloped infrastructure, Puerto Ricans today face average energy costs that are twice the US average – all while consuming only one-fourth of US energy per capita.
The first LPO loan to a Puerto Rico power producer, Project Marahu, closed in October 2024, and when completed will add more than 200 MW of solar and up to 285 MW of independent energy storage to Puerto Rico's grid.
With its September 2023 partial loan guarantee for Project Hestia, the LPO is also supporting the installation of a virtual power plant (VPP)-renovation of solar roofs and battery installations in Puerto Rico. As a national project, the sponsor of Hestia is committed to investing at least 20% under Project Hestia to homeowners in Puerto Rico.
As part of its procurement plan, the Puerto Rico Electric Power Authority wants to install 1,500 MW of battery storage and requires a minimum storage capacity to be integrated with each solar utility project. Energy storage systems currently online in Puerto Rico are posted daily.
Including Marahu, the LPO's closed and conditionally committed financing supports more than 100% of the capacity the Puerto Rico Electric Power Authority is aiming to purchase under its first request for an energy storage project, the first of six.
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