The U.S. Department of Energy (DOE) Loan Programs Office (LPO) announced today the closure of a $584.5 million loan guarantee to subsidiaries of Convergent Energy and Power Inc., a leading energy storage solutions provider in North America. The financing, which includes $559.4 million in principal and $25.1 million in capitalized interest, will support the development of a solar photovoltaic (PV) system integrated with battery energy storage (BESS) and three stand-alone BESS projects across Puerto Rico.
The initiative aligns with the Biden-Harris Administration’s commitment to modernizing Puerto Rico’s electric grid and advancing clean energy deployment. Convergent submitted its loan application to the LPO in August 2023.
Enhancing Puerto Rico’s Energy Infrastructure
The solar PV facility is expected to deliver approximately 200,000 MWh of energy annually to Puerto Rico’s grid, while the stand-alone BESS projects will provide up to 900 MWh of storage capacity. Together, these systems aim to bolster the island’s grid reliability, resilience, and affordability, particularly in the face of extreme weather.
Widespread solar and battery storage adoption is anticipated to reduce Puerto Rico’s energy costs, which remain significantly higher than the U.S. average, and to cut carbon emissions. The projects are projected to avoid nearly 2.5 million tonnes of carbon dioxide equivalent emissions annually, equivalent to the energy usage of 335,000 homes per year.
Key Project Details
- Coamo Solar-Plus-Storage Facility: A 100 MW solar PV system paired with a 55 MW (55 MWh) battery storage system.
- Stand-Alone BESS Projects:
- Caguas: 25 MW/100 MWh.
- Peñuelas: 100 MW/400 MWh.
- Ponce: Up to 100 MW/400 MWh.
In total, the projects will add 225 MW of energy storage capacity, enhancing Puerto Rico’s transition to renewable energy under its Energy Public Policy Act (Act 17), which mandates 100% renewable energy by 2050 and a complete phase-out of coal-fired generation by 2028.
Economic and Community Impact
The projects are expected to create approximately 540 construction jobs and 20 full-time operational roles. Convergent, in partnership with the Puerto Rico Department of Economic Development and Commerce (DDEC), will incorporate Registered Apprentice Programs, with local workers making up at least 15% of total construction hours.
These initiatives support the Biden Administration’s Justice40 Initiative, ensuring 40% of the benefits from federal investments flow to disadvantaged and marginalized communities.
Supporting Clean Energy Transition
Financing for this project is provided through the Energy Infrastructure Reinvestment (EIR) program under the Title 17 Clean Energy Financing initiative. This program, established by the Inflation Reduction Act, supports projects that replace or repurpose outdated energy infrastructure, reduce greenhouse gas emissions, and create economic opportunities in energy communities.
The announcement follows other DOE actions to improve Puerto Rico’s energy infrastructure, including the establishment of the $1 billion Puerto Rico Energy Resilience Fund (PR-ERF) in December 2022.
As of December 2024, the DOE has received 182 applications for clean energy projects nationwide, requesting a total of $278.9 billion in loans and guarantees.
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