US closes $861 million loan guarantee for solar, energy storage in Puerto Rico

WASHINGTON (Reuters) - The U.S. Energy Department said on Tuesday it closed an $861 million loan guarantee to finance the construction of two solar photovoltaic farms and two battery storage systems in Puerto Rico.

WHY IT'S IMPORTANT

The power grid of Puerto Rico, a U.S. territory, has been battered by hurricanes in recent years, and people in remote mountain towns were left without power for nearly a year after Hurricane Maria in 2017. Between 3,000 and 4,600 people died after Maria knocked out power, studies say.

The borrower is Clean Flexible Energy LLC, an indirectsubsidiary of AES (NYSE:AES ) and TotalEnergies (EPA:TTEF ) Holdings USA. The financing was closed by the Energy Department's Loan Programs Office.

KEY QUOTE

"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," said U.S. Energy Secretary Jennifer Granholm.

BY THE NUMBERS

Annually, the solar installations of the project known as Marahu will produce enough electricity to power about 43,000 homes, and enhance Puerto Rico’s grid reliability and energy security, the department said. Marahu comprises 200 megawatts of solar power and up to 285 MW of standalone battery energy storage, it said.The facilities will be located in the municipalities of Guayama and Salinas. Marahu supports the administration’s  Justice40 Initiative, which established the goal that 40% of the overall benefits of certain federal investments, including LPO financing, flow to disadvantaged communities, which includes most of Puerto Rico's 3.2 million U.S. citizens.

Source: Investing.com