The Biden-Harris administration has announced a significant investment aimed at enhancing renewable energy infrastructure in Puerto Rico. Through the U.S. Department of Energy (DOE), the administration has issued a loan guarantee of $861.3 million to fund the construction of two solar photovoltaic (PV) farms and two standalone battery energy storage systems (BESS) in the region. These facilities will be situated in the municipalities of Guayama (Jobos) and Salinas, providing clean, reliable, and affordable energy to local communities.
The borrower for this ambitious project is Clean Flexible Energy, LLC, a subsidiary of The AES Corporation and TotalEnergies Holdings USA, Inc. The project aligns with the Biden-Harris administration’s Investing in America agenda, which aims to promote clean energy solutions and address climate change’s effects on vulnerable communities.
U.S. Secretary of Energy Jennifer M. Granholm emphasized the importance of reliable energy access, especially in areas prone to climate change-related disasters. She noted that the new solar facilities would add up to 200 megawatts of solar generation and 285 megawatts of storage capacity to Puerto Rico’s electric grid. This improvement aims to enhance the resilience of the grid and help lower energy costs, which have long been a burden for many families on the island.
The project, referred to as Project Marahu, is expected to create approximately 750 construction jobs and more than 50 full-time positions once the facilities are operational. Additionally, it supports the Biden-Harris administration’s Justice40 Initiative, which aims to direct 40% of the benefits from certain federal investments to disadvantaged communities, including many in Puerto Rico. Residents of Puerto Rico currently face energy costs significantly higher than the U.S. average, highlighting the urgent need for affordable energy solutions.
Collectively, Project Marahu will encompass 200 MW of solar PV capacity and up to 285 MW (1,140 MWh) of standalone BESS capacity. The solar installations are projected to generate approximately 460,000 MWh of energy annually, enough to power around 43,000 homes. This new infrastructure will not only enhance energy security but also improve the overall reliability of Puerto Rico’s power grid. The integration of solar and battery storage will allow the facilities to continue supplying power even during adverse weather conditions, an essential factor in a region susceptible to hurricanes and tropical storms.
The transition to solar and battery energy storage will also contribute to reducing greenhouse gas emissions. It is estimated that this project will help decrease emissions by nearly 2.7 million tons of CO2 equivalent each year, which is comparable to the annual emissions produced by about 533,000 gasoline-powered cars. This effort aligns with Puerto Rico’s goal of transitioning to a fully renewable energy grid by 2050, as mandated by the Puerto Rico Energy Public Policy Act.
In addition to environmental benefits, the administration is focused on ensuring that local communities benefit from the project. The DOE has emphasized the importance of developing a Community Benefits Plan (CBP) to promote community and labor engagement. This plan will aim to enhance the well-being of residents and workers while maintaining high labor standards during the construction and operational phases of the project. The Marahu team includes community relations managers from the Guayama area, ensuring that local voices are heard throughout the project’s development.
The funding for Project Marahu comes from the Energy Infrastructure Reinvestment (EIR) program, part of the Inflation Reduction Act. This program aims to finance projects that can repurpose or replace outdated energy infrastructure and reduce air pollutants and greenhouse gas emissions. By supporting the transition from coal to clean energy, this initiative is expected to create new job opportunities and significantly lower harmful emissions.
Today’s announcement is part of the broader efforts by the Biden-Harris administration to improve Puerto Rico’s energy resilience. In December 2022, President Biden authorized $1 billion for the Puerto Rico Energy Resilience Fund (PR-ERF) to drive investments in renewable and resilient energy infrastructure. The DOE’s study on Puerto Rico’s grid resilience outlines strategies for achieving a 100% renewable grid by 2050.
The Loan Programs Office has received over 211 applications for projects across the United States, totaling more than $305.3 billion in requested loans and guarantees, as of September 2024. As this project moves forward, it represents a crucial step towards revitalizing Puerto Rico’s energy landscape, fostering economic growth, and addressing the pressing challenge of climate change.
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