DOE Announces $861 Million Solar Loan for Puerto Rico

The U.S. Department of Energy (DOE) has finalized an $861.3 million loan guarantee to finance the construction of two solar photovoltaic (PV) farms and two battery energy storage systems in Puerto Rico, specifically in the municipalities of Guayama and Salinas. This initiative, known as Project Marahu, aims to add up to 200 megawatts of solar generation and 285 megawatts of storage capacity, significantly enhancing Puerto Rico's energy grid resilience and reducing high energy costs for its residents. U.S. Energy Secretary Jennifer Granholm emphasized the importance of reliable energy access in the face of climate change, highlighting that this project will power approximately 43,000 homes and replace fossil fuel reliance. The project is expected to create around 750 construction jobs and over 50 permanent positions, aligning with the Biden-Harris administration's Justice40 Initiative to ensure that 40% of federal investment benefits disadvantaged communities. Clean Flexible Energy, a joint venture between AES Corporation and TotalEnergies, is the borrower responsible for the project. This funding represents a significant step towards diversifying Puerto Rico's energy resources and improving its infrastructure, which has suffered from numerous climate-related disasters in recent years.