The Biden-Harris administration has announced a significant loan guarantee to support the development of solar and energy storage facilities in Puerto Rico. The U.S. Department of Energy (DOE), through its Loan Programs Office (LPO), is providing a $861.3 million loan guarantee for the construction of two photovoltaic solar facilities equipped with battery storage and two standalone battery energy storage systems (BESS) in the municipalities of Guayama and Salinas.
The project, known as Project Marahu, will be executed by Clean Flexible Energy, LLC, a subsidiary managed under an agreement between The AES Corporation and TotalEnergies Holdings USA, Inc. "The president and vice president understand that access to reliable energy is a matter of life or death," stated U.S. Secretary of Energy Jennifer M. Granholm.
This initiative aims to enhance Puerto Rico's power grid resilience by adding up to 200 megawatts of solar generation and 285 megawatts of reliable storage capacity. It aligns with the Biden-Harris administration's Justice40 Initiative, which seeks to direct 40% of certain federal investments' benefits toward disadvantaged communities.
The project's impact extends beyond energy improvements; it is expected to create approximately 750 construction jobs and over 50 full-time positions once operational. Additionally, it supports Puerto Rico's transition from fossil fuels to renewable energy sources by reducing carbon emissions significantly.
A Community Benefits Plan (CBP) will be developed as part of this project to ensure meaningful community engagement and labor standards throughout its lifecycle. Local labor leaders will participate in planning both at Jobos and Salinas sites.
Funded under the Energy Infrastructure Reinvestment Program (EIR) created by President Biden's Inflation Reduction Act, Project Marahu exemplifies efforts to replace coal-based infrastructure with clean energy solutions while fostering economic revitalization in energy communities.
The DOE has previously allocated substantial funds for strengthening Puerto Rico’s grid resilience, including $1 billion authorized by President Biden for the Puerto Rico Energy Resilience Fund (PR-ERF). This funding supports key investments in renewable infrastructure across the island.
As part of broader efforts, the DOE continues attracting numerous applications nationwide for loans and guarantees aimed at advancing clean energy projects.
