The U.S. Energy Department announced on Tuesday that it has finalized an $861 million loan guarantee to fund the construction of two solar photovoltaic farms and two battery storage systems in Puerto Rico. This initiative aims to bolster the island's power grid, which has faced significant challenges following recent hurricanes, particularly Hurricane Maria in 2017, which left many remote mountain communities without electricity for nearly a year. Studies estimate that between 3,000 and 4,600 fatalities were linked to the power outage caused by the hurricane.
The borrower for this project is Clean Flexible Energy LLC, a subsidiary of AES and TotalEnergies Holdings USA. The loan was arranged through the Energy Department's Loan Programs Office.
U.S. Energy Secretary Jennifer Granholm highlighted the critical importance of reliable energy access, stating, “President (Joe) Biden and Vice President (Kamala) Harris understand that access to reliable energy is a matter of life or death—especially in the face of climate change-fueled natural disasters that are increasing in intensity and frequency.”
The solar initiative, named Marahu, is projected to generate enough electricity annually to power approximately 43,000 homes, thereby improving Puerto Rico's grid reliability and energy security. Marahu will include 200 megawatts of solar power and up to 285 megawatts of standalone battery energy storage, with facilities situated in the municipalities of Guayama and Salinas.
Additionally, the project aligns with the Biden administration's Justice40 Initiative, which aims to ensure that 40% of the benefits from specific federal investments, including Loan Programs Office financing, reach disadvantaged communities. This is particularly significant for Puerto Rico's 3.2 million residents, many of whom belong to these communities.
