The U.S. Department of Energy (DOE) has announced a significant $1.2 billion in financing aimed at transitioning Puerto Rico’s power grid from fossil fuels to solar energy and battery storage by 2032.
Through the DOE’s Loan Programs Office (LPO), the financing will support multiple projects contracted with the Puerto Rico Electric Power Authority (PREPA). These projects include:
- A $584.5 million loan guarantee for Convergent Energy to fund a 100 MW solar farm with a 55 MW (55 MWh) battery energy storage system (BESS) in Coamo, along with additional BESS installations in Caguas (25 MW/100 MWh), Peñuelas (100 MW/400 MWh), and Ponce (up to 100 MW/400 MWh).
- A conditional loan guarantee of up to $133.6 million for Infinigen’s subsidiary to develop a 32.1 MW solar farm with an integrated 14.45 MW (4.76 MWh) BESS, and a standalone 50 MW (200 MWh) BESS expansion in Yabucoa.
- A conditional loan guarantee of up to $489.4 million for Pattern Energy’s subsidiary to build three standalone BESS in Arecibo (50 MW/200 MWh), Santa Isabel (50 MW/200 MWh, 80 MW/320 MWh), and a 70 MW solar farm with integrated BESS in Arecibo.
These projects, if finalized, would significantly increase the DOE’s support for solar and energy storage in Puerto Rico, more than doubling the utility-scale solar generation and storage capacity on the island.
Puerto Rico has faced high energy costs—twice the U.S. average—due to its reliance on imported fuel, frequent tropical storms, and underinvested infrastructure. This new initiative aims to build a more affordable, reliable, and clean energy system. LPO’s financing provides low-cost funding and thorough due diligence to help Puerto Rico’s energy transition.
In October 2024, LPO closed its first loan for a Puerto Rican power project, Project Marahu, which will add more than 200 MW of solar energy and up to 285 MW of stand-alone storage. Additionally, a partial loan guarantee for Project Hestia, launched in September 2023, supports rooftop solar and storage installations in Puerto Rico, with a commitment for at least 20% of installations to benefit local homeowners.
PREPA’s energy procurement plan includes installing 1,500 MW of battery storage, with a minimum capacity requirement for each solar project. The current and future storage projects, including those funded by LPO, will help Puerto Rico meet its energy storage goals, with LPO’s financing supporting more than 100% of the storage capacity PREPA initially sought in its first set of energy storage proposals.