DOE grants $860M in loan guarantees for 2 solar farms in Puerto Rico
The facilities will be in the towns of Guayama and Salinas.
The U.S. Department of Energy (DOE), through its Loan Programs Office (LPO), has announced a $861.3 million loan guarantee to finance the construction of two solar photovoltaic (PV) farms equipped with battery storage and two standalone battery energy storage systems (BESS) in Puerto Rico.
The projects, located in Guayama (Jobos) and Salinas, aim to deliver clean, reliable and affordable power to communities throughout the island, the agency stated.
Clean Flexible Energy LLC, a joint venture between AES Corp. and TotalEnergies Holdings USA Inc., is the borrower for this project.
“Today’s announcement will help add up to 200 megawatts [MW] of solar generation and another 285 megawatts of reliable storage capacity to Puerto Rico’s electric grid to improve the grid’s resilience and help reduce energy costs that have remained too high for too long for too many families — all while enabling the commonwealth to reach its ambitious climate goals,” said U.S. Secretary of Energy Jennifer M. Granholm.
This project, known as Project Marahu, is expected to generate around 750 construction jobs and more than 50 full-time jobs once fully operational.
Annually, the solar installations are estimated to produce enough energy to power approximately 43,000 homes, and improve Puerto Rico’s grid reliability.
The operation of the solar and storage systems is expected to eventually replace existing fossil fuel-based generation and reduce emissions by nearly 2.7 million tons of carbon dioxide equivalents per year, equivalent to the annual emissions of around 533,000 gasoline-powered passenger vehicles.
LPO borrowers are also expected to develop and ultimately implement a comprehensive Community Benefits Plan (CBP) that ensures “meaningful community and labor engagement, improves the well-being of residents and workers, and incorporates strong labor standards during construction, operations, and throughout the life of the loan guarantee,” the agency stated.
The Project Marahu team includes two community relations managers who are from the Guayama community and a group of local community engagement advisers. Local labor leaders will be engaged for the construction and operations planning at both the Jobos and Salinas sites.
AES, through existing facilities operating in Puerto Rico, has forged partnerships with community development nonprofits and minority-serving educational institutions. AES has also worked with a variety of organizations to lead capacity-building and entrepreneurship programs for Guayama and Salinas community members and has formalized programs offering targeted training and career development opportunities for women.
The full CBP is being finalized and will be released to the public “soon,” the agency said.
