U.S. Energy Dept. Offers $861M For Solar Projects In Puerto Rico

The U.S. Energy Department is proposing a conditional loan guarantee of up to $861 million for two large-scale solar-energy projects in Puerto Rico. These projects aim to increase energy security, especially after the hurricanes that damaged the island's grid. The projects involve 200 MW of photovoltaic solar panels and up to 285 MW of battery storage capacity.

The U.S. Energy Department announced on Thursday its conditional offer of an $861 million loan guarantee for two significant solar-energy projects in Puerto Rico, aiming to enhance energy security after hurricanes devastated the island's grid.

The Loan Programs Office has granted the conditional commitment to Clean Flexible Energy LLC for constructing two solar photovoltaic farms, complete with battery storage, plus two standalone battery systems. These projects, to be built in Salinas and Guayama, will use 200 megawatts of solar panels and up to 285 MW of battery storage, potentially supplying power to 43,000 homes.

Clean Flexible Energy, a subsidiary of AES Corp and TotalEnergies Holdings USA Inc., will oversee implementation. According to Jigar Shah, the LPO director, the projects will also utilize new hurricane-resistant technology to safeguard equipment during severe weather. Shah highlighted that these advanced systems could set a model for solar energy in hurricane-prone regions.

In addition to this financing, the Energy Department's $1-billion Puerto Rico Energy Resilience Fund, signed into law by President Biden in 2022, seeks to provide rooftop solar panels. A $325-million funding opportunity has also been announced for solar and battery systems in health centers and multi-family housing areas.

(With inputs from agencies.)