The Biden-Harris administration has announced a significant step in advancing clean energy initiatives with the approval of an $861.3 million loan guarantee by the U.S. Department of Energy (DOE). This financial backing, facilitated through the Loan Programs Office (LPO), is designated for constructing two solar photovoltaic farms and two standalone battery energy storage systems in Puerto Rico's Guayama and Salinas municipalities.
U.S. Secretary of Energy Jennifer M. Granholm emphasized the importance of this development, stating, "President Biden and Vice President 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." The project aims to add 200 megawatts of solar generation and 285 megawatts of storage capacity to Puerto Rico's electric grid.
This initiative aligns with the administration's Investing in America agenda, promising around 750 construction jobs and over 50 full-time positions once operational. It also supports the Justice40 Initiative, which targets delivering at least 40% of federal investment benefits to disadvantaged communities like those in Puerto Rico.
Known as Project Marahu, this venture will produce approximately 460,000 MWh annually, powering about 43,000 homes while enhancing grid reliability. It is expected to replace fossil fuel-based generation gradually, cutting emissions by nearly 2.7 million tons of CO2e per year.
The project is part of efforts under Title 17 Clean Energy Financing Section 1706 from President Biden’s Inflation Reduction Act. It seeks to replace coal infrastructure with renewable facilities as mandated by Puerto Rico's Energy Public Policy Act (Act 17).
Additional DOE actions include authorizing $1 billion for establishing the Puerto Rico Energy Resilience Fund (PR-ERF) aimed at boosting renewable energy infrastructure on the island.
For more details on Project Marahu or other DOE initiatives, interested parties can explore LPO’s portfolio project page.
