The U.S. Department of Energy announced an $861 million loan guarantee on Wednesday to build two solar photovoltaic farms in Puerto Rico as persistent power outages plague the U.S. territory.
The project would be located in the southern coastal towns of Guayama and Salinas and backed by Clean Flexible Energy LLC, a subsidiary of The AES Corporation and Total Eenrgies Holdings USA Inc.
“President Biden and Vice President 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,” said U.S. Secretary of Energy Jennifer M. Granholm. “Today’s announcement will help add up to 200 megawatts 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.”
Collectively, the project—known as Project Marahu—comprises 200 MW of solar PV and up to 285 MW (1,140 MWh) of stand-alone BESS capacity. Annually, the solar PV installations will produce approximately 460,000 MWh of energy, enough to power approximately 43,000 homes, and enhance Puerto Rico’s grid reliability and energy security. The co-location of the new solar and battery resources will help maximize the project’s energy production and improve grid stability. Battery storage will allow the project to continue to provide energy to residents even during adverse weather conditions. 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 CO2e per year, an amount roughly equivalent to the annual emissions of around 533,000 gasoline-powered passenger vehicles.
The solar photovoltaic project is expected to generate about 460,000 megawatts of energy, enough to power some 43,000 homes, officials say.
The announcement comes as Puerto Rico continues to struggle with ongoing outages blamed on a crumbling electric grid that was razed by Hurricane Maria when it hit the island as a powerful Category 4 storm in September 2017.
The grid, which is still being rebuilt, was in a fragile state even before the storm hit due to a lack of investment and maintenance.
Fossil fuels currently generate 94% of Puerto Rico’s electricity, with the island tasked with obtaining 40% of its energy from renewable sources by next year and 60% by 2040.
