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The U.S. federal government has recently approved a loan guarantee amounting to $861 million to support what will become Puerto Rico’s largest utility-scale solar and battery storage systems, as reported by the specialized outlet Canary Media.
In July, the Department of Energy’s (DOE) Loan Programs Office revealed funding for two solar-plus-storage facilities along the island’s southern coastline, in addition to two standalone battery energy storage systems. The combined solar facilities will have a capacity of 200 megawatts, sufficient to supply power to 43,000 households, whereas the battery systems are anticipated to deliver up to 285 megawatts of storage capacity, according to Canary Media.
The initiative, known as Project Marahu, will be spearheaded by Clean Flexible Energy LLC (CFE), an indirect subsidiary of U.S. energy firms AES Corp. and TotalEnergies Holdings USA. The installations will be situated within the municipalities of Guayama and Salinas, as noted by Canary Media.
The DOE extends loans for renewable energy endeavors on the stipulation that borrowers satisfy specified financial and administrative criteria. The agency has confirmed that CFE has fulfilled all necessary requirements, indicating that substantial financial resources will soon be directed toward construction.
Project Marahu is slated to become operational in 2025.
Jigar Shah, director of the DOE’s Loan Programs Office, conveyed to Canary Media that the loan signifies a significant opportunity to diversify and stabilize Puerto Rico’s power grid, which presently derives over 90% of its electricity from fossil fuels.
“There’s immense potential for additional projects of this nature,” he remarked.
