Convergent Energy gets $559M pledge for solar projects in Puerto Rico
The company’s solar and energy storage systems are designed to enhance the island grid’s resilience, reduce energy costs,and decrease reliance on fossil fuel generation.
Convergent Energy and Power, a North American energy storage solutions provider, has secured a conditional commitment from the U.S. Department of Energy Loan Programs Office (LPO) for a loan guarantee of up to $559.4 million.
The funding will support Convergent’s subsidiaries in building a solar photovoltaic (PV) system with integrated battery storage and three stand-alone battery storage systems across Puerto Rico.
These systems are expected to enhance Puerto Rico’s grid resilience, reduce reliance on fossil fuels and lower energy costs.
“Enhancing grid reliability and sustainability in Puerto Rico is critical. We applaud the Department of Energy for recognizing Convergent Energy and Power’s track record of expertise in the energy storage and solar sectors,” said Frank Genova, Convergent’s chief financial officer. “We look forward to contributing to the modernization of Puerto Rico’s electric grid and advancing its clean energy goals.”
The solar-plus-storage installation in Coamo will feature a 100 megawatt (MW) solar PV system paired with a 55 MW/55 MWh battery storage system. The stand-alone battery storage systems will be developed in Caguas, Peñuelas and Ponce.
These systems will supply power directly to Puerto Rico’s grid and support the island’s goal of achieving 100% clean energy by 2050.
The initiative is projected to avoid nearly 2.5 million tonnes of carbon dioxide equivalent emissions annually by reducing reliance on fossil fuel-powered generation.
The projects will also include a Community Benefits Plan to ensure “meaningful community and labor engagement,” improve “the well-being of residents and workers,” and incorporate “strong labor standards during construction, operations, and throughout the life of the loan guarantee.”
Founded in 2011, Convergent has developed more than 800 MW/1 gigawatt-hours of energy storage and solar-plus-storage systems, which is equivalent to the energy consumption of approximately 750,000 homes.
The DOE’s conditional commitment indicates intent to finance the project, subject to environmental reviews and the satisfaction of technical, legal, environmental, commercial and financial conditions before finalizing financing documents and funding the loan guarantee.
