U.S. Secures $861 Million Loan Guarantee for Solar and Energy Storage in Puerto Rico
An $861 million loan guarantee to finance two solar farms and battery storage systems in Puerto Rico was approved by the U.S. Energy Department. This follows years of hurricane-related damage to the power grid, such as Hurricane Maria, which caused widespread power outages for almost a year. Between 3,000 and 4,600 people died after Maria knocked out power.
With the completion of the Marahu project, the 3.2 million population of the entire island will have improved grid reliability and 43,000 households will be powered annually. Total Energies Holdings USA (TTEF.PA) and Clean Flexible Energy LLC will be an indirect subsidiary of AES.N and are the lending companies. The Loan Programs Office of the Energy Department closed the financing.
U.S. Energy Secretary Jennifer Granholm stated, “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.”
According to the department, the Marahu project’s solar panels will improve Puerto Rico’s grid reliability and energy security each year by producing enough electricity to power roughly 43,000 homes. According to the statement, Marahu has up to 285 MW of self-sustaining battery energy storage and 200 MW of solar output. The municipalities of Guayama and Salinas will house the facilities. Marahu backs the administration’s Justice40 Initiative, which aims to give disadvantaged communities including the majority of Puerto Rico’s 3.2 million American citizens, a 40% of the total benefits of various federal projects, including LPO finance.
