The U.S. Department of Energy's Loan Programs Office (LPO) has announced the approval of a $584.5 million loan guarantee to subsidiaries of Convergent Energy and Power Inc., a leading energy storage solutions provider in North America. This funding will support the development of a solar photovoltaic (PV) system integrated with a battery energy storage system (BESS) and three standalone BESS projects across Puerto Rico. The initiative is part of the Biden-Harris Administration’s commitment to modernizing Puerto Rico’s electric grid.
The proposed solar PV facility aims to supply approximately 200,000 MWh of energy annually to Puerto Rico’s grid, while the standalone BESS installations will provide up to 900 MWh of storage capacity. These systems are expected to enhance grid reliability and reduce energy costs in Puerto Rico, which are currently higher than the U.S. average.
This project is projected to prevent nearly 2.5 million tonnes of carbon dioxide equivalent emissions each year by reducing reliance on fossil fuel-powered generation—a reduction comparable to the annual energy use emissions from 335,000 homes.
In Coamo, Convergent plans to establish a 100-MW solar PV system paired with a 55 MW (55 MWh) BESS. Additional BESS installations in Caguas, Peñuelas, and Ponce will have capacities up to 225 MW (900 MWh). These developments are aligned with Puerto Rico's clean energy goals under the Puerto Rico Energy Public Policy Act, aiming for a complete transition from coal-fired generation by 2028 and achieving 100% renewable energy by 2050.
The project will create around 540 construction jobs and approximately 20 full-time positions once operational. In collaboration with local agencies like the Puerto Rico Department of Economic Development and Commerce, Convergent plans to implement Registered Apprentice Programs for workforce development, targeting at least 15% participation from local communities.
This investment aligns with President Biden's Justice40 Initiative, aiming for significant federal investment benefits in climate and clean energy projects for disadvantaged communities.
Funding for this project is provided through the Energy Infrastructure Reinvestment program under Title 17 Clean Energy Financing established by President Biden’s Inflation Reduction Act. This initiative supports economic revitalization in former coal-dependent regions by transitioning towards clean energy facilities that generate employment opportunities while reducing emissions.
This announcement follows previous actions taken by DOE and the Biden Administration toward enhancing Puerto Rico's grid modernization efforts. In December 2022, President Biden authorized $1 billion for establishing the Puerto Rico Energy Resilience Fund aimed at bolstering renewable infrastructure on the island.
As reported by DOE, its LPO programs have attracted over $278.9 billion in requested loans and loan guarantees across various projects nationwide as of December 2024.
