The Biden-Harris Administration has announced a $72.8 million loan guarantee to finance the development of a solar-plus-long-duration-energy-storage microgrid on the Tribal lands of the Viejas (Baron Long) Group of Capitan Grande Band of Mission Indians of the Viejas Reservation near Alpine, California. This initiative is part of the Investing in America agenda and aims to provide reliable renewable energy generation and storage infrastructure.
The project will be supported by a grant from the California Energy Commission, investments from U.S. Bancorp Impact Finance, and Starbucks. It includes installing a 15 MW photovoltaic solar generation system and a 70 MWh battery long-duration energy storage system. U.S. Secretary of Energy Jennifer M. Granholm emphasized the administration's commitment to building resilient Tribal and Indigenous communities through this investment.
U.S. Senator Alex Padilla highlighted that the project aligns with California’s clean energy goals while promoting energy independence for Tribes amid increasing energy demands. U.S. Senator Laphonza Butler noted that this investment would ensure affordable and reliable clean energy access for the Viejas Band of Kumeyaay Indians.
The Viejas Band will purchase electricity through a long-term power purchase agreement to support various commercial operations, including gaming, hospitality, and retail facilities. The project is expected to create 250 construction jobs and eight permanent operations jobs, prioritizing Tribal-, minority-, and veteran-owned contractors.
Indian Energy, a Native-owned microgrid developer, will lead the project development alongside Turtle Mountain Band of Chippewa Indians and Sault Ste Marie Tribe of Chippewa Indians. The DOE’s Loan Programs Office (LPO) will provide up to $72.8 million in guarantees for an overall loan amount between $80.8 million and $100 million.
This initiative supports President Biden’s efforts to enhance Tribal energy sovereignty by promoting ownership or deployment of clean energy assets on Tribal lands. It also aligns with the Justice40 Initiative, aiming to direct 40% of federal investment benefits to disadvantaged communities.
State financial assistance has previously supported this project with approximately $43 million from the California Energy Commission for developing the long-duration energy storage system.
Across its programs, LPO has attracted 211 active applications totaling over $295 billion in requested loans and loan guarantees as of August 2024.
For more information about Viejas Microgrid, visit LPO’s portfolio project page and learn more about DOE’s Tribal Energy Financing Program.
