As part of the Biden-Harris Administration’s Investing in America agenda, the U.S. Department of Energy (DOE) through its Loan Programs Office (LPO) announced an $861.3 million loan guarantee to finance the construction of two photovoltaic (PV) farms equipped with battery storage and two stand-alone battery energy storage systems (BESS) in Puerto Rico. The facilities will be located in the municipalities of Guayama (Jobos) and Salinas and will help deliver clean, reliable and affordable power to communities throughout Puerto Rico. The borrower is Clean Flexible Energy, an indirect subsidiary of The AES Corporation (AES) and TotalEnergies Holdings USA, which is operated under a joint venture agreement between the two companies. The announcement underscores the President and Vice President’s efforts to deliver clean energy solutions that benefit communities struggling with the ongoing and ongoing impacts of climate change.
“President Biden and Vice President Harris understand that access to reliable energy is a matter of life and death – especially in light of climate change-induced natural disasters that are increasing in intensity and frequency,” said U.S. Secretary of Energy Jennifer M. Granholm. . “Today’s announcement will help add 200 MW of solar and another 285 MW of reliable storage capacity to Puerto Rico’s electric grid to improve the resiliency of the electric grid and help reduce the energy costs that burden too many families have remained too high for too long – all while enabling the Commonwealth to achieve its ambitious climate goals.”
As part of President Biden and Vice President Harris’ Investing in America agenda to create high-paying, high-quality jobs, this project, once fully operational, will support approximately 750 construction jobs and more than 50 full-time jobs. The project also supports the Biden-Harris Administration’s Justice40 Initiative, which set a goal of 40% of the total benefits from certain federal investments, including LPO funding, flowing to underserved communities, including most of Puerto Rico. Puerto Rican residents pay energy costs significantly higher than the U.S. average. According to the Climate and Economic Justice Screening Tool, the Commonwealth of Puerto Rico, including the communities surrounding the Salinas and Jobos projects, faces some of the highest energy burdens in the United States.
Collectively, the project – known as Project Marahu – includes 200 MW of solar PV and up to 285 MW (1,140 MWh) of standalone BESS capacity. Annually, the solar PV installations will produce approximately 460,000 MWh of energy, enough to power approximately 43,000 homes, and increase the reliability of Puerto Rico’s electric grid 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. Thanks to battery storage, the project can continue to supply energy to residents even in adverse weather conditions.
As part of the Biden-Harris Administration’s efforts to build an equitable and inclusive clean energy future, LPO borrowers are also expected to develop and ultimately implement a comprehensive Community Benefit Plan (CBP) that ensures for meaningful community and labor engagement, and improves well-being. of residents and employees, and includes strict labor standards during construction, operation and during the life of the loan guarantee. The Marahu project is being finalized by CBP and will be released to the public soon.
The Project Marahu team consists of two community relations managers drawn from the Guayama community and a group of local community engagement advisors. Local union leaders will be engaged for construction and operations planning at both the Jobos and Salinas sites. AES, through existing facilities in Puerto Rico, has forged partnerships with community development nonprofits and educational institutions serving minorities. AES has also worked with several organizations to lead capacity building and entrepreneurship programs for Guayama and Salinas community members and has formalized programs that provide targeted training and career development opportunities for women.
This project is funded through theEnergy Infrastructure Reinvestment Program (EIR). under Title 17 Clean Energy Financing, Section 1706. EIR, established by President Biden’s Inflation Reduction Act, can finance projects that redesign, repurpose, repurpose, or replace energy infrastructure that is no longer active, or that involve the operation of energy infrastructure to avoid, reduce, use or sequester air pollutants or greenhouse gas emissions. In support of President Biden’s efforts to support economic revitalization in energy communities, Project Marahu will help replace coal energy infrastructure with clean energy facilities – creating new jobs while reducing harmful emissions. The Puerto Rico Energy Public Policy Act (Act 17) requires Puerto Rico’s utility to cease all coal-fired power generation by 2028 and transition to a 100% renewable energy mix by 2050.
This announcement is one of many actions DOE has taken to help modernize Puerto Rico’s electric grid and strengthen energy resilience. In December 2022, President Biden authorized $1 billion to establish the Puerto Rico Energy Resilience Fund (PR-ERF)which is managed by DOE’s Grid Deployment Office. The PR-ERF is a separate federal funding source to spur important investments in renewable and resilient energy infrastructure in Puerto Rico.
News release from DOE
