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In a major step toward enhancing Puerto Rico’s energy resilience, the Biden-Harris administration has announced an $861.3 million loan guarantee through the U.S. Department of Energy (DOE) to fund the construction of two solar photovoltaic (PV) farms and two standalone battery energy storage systems (BESS) in the municipalities of Guayama (Jobos) and Salinas. The new infrastructure aims to provide clean, reliable, and affordable energy to local communities while boosting the island’s energy grid.
The project, referred to as Project Marahu, will be undertaken by Clean Flexible Energy, LLC, a subsidiary of The AES Corporation and TotalEnergies Holdings USA, Inc. It aligns with the administration’s Investing in America agenda, which focuses on advancing clean energy solutions and addressing climate change’s impact on vulnerable communities.
U.S. Secretary of Energy Jennifer M. Granholm underscored the importance of energy reliability in areas prone to climate disasters, noting that the new solar facilities would add up to 200 megawatts (MW) of solar generation and 285 MW of storage capacity to Puerto Rico’s grid. These upgrades are designed to improve grid resilience and help lower energy costs for island residents, who face some of the highest electricity rates in the U.S.
Economic and environmental benefits
Project Marahu is expected to create approximately 750 construction jobs and over 50 permanent roles once operational. The project also supports the Biden-Harris administration’s Justice40 Initiative, ensuring that 40% of the benefits from federal investments reach disadvantaged communities, many of which are located in Puerto Rico.
In total, Project Marahu will encompass 200 MW of solar PV capacity and 285 MW (1,140 MWh) of standalone battery storage, producing around 460,000 MWh annually—enough to power about 43,000 homes. The integration of solar and battery storage will enhance energy security, allowing the facilities to supply power even during extreme weather conditions, a critical advantage in a region frequently hit by hurricanes and tropical storms.
This transition to renewable energy is expected to reduce greenhouse gas emissions by nearly 2.7 million tons of CO2 equivalent annually, comparable to taking 533,000 gasoline-powered cars off the road. The project is a key component of Puerto Rico’s goal of achieving 100% renewable energy by 2050, as mandated by the Puerto Rico Energy Public Policy Act.
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Community engagement and support
The DOE has stressed the importance of developing a Community Benefits Plan (CBP) for the project, which will promote community engagement and uphold high labor standards throughout the construction and operational phases. Community relations managers from the Guayama area are involved in ensuring local voices are heard and that the project benefits residents directly.
Funding for Project Marahu comes from the Energy Infrastructure Reinvestment (EIR) program, part of the Inflation Reduction Act. This program is designed to finance the transition from outdated energy infrastructure to cleaner alternatives, with a focus on reducing emissions and creating job opportunities.
This investment builds on previous efforts by the Biden-Harris administration to bolster Puerto Rico’s energy system. In December 2022, President Biden authorized $1 billion for the Puerto Rico Energy Resilience Fund (PR-ERF), and the DOE continues to outline strategies for achieving a fully renewable energy grid by 2050.
The DOE’s Loan Programs Office, which manages this project, has received over 211 applications for renewable energy initiatives across the U.S., totaling more than $305.3 billion in requested loans and guarantees as of September 2024. Project Marahu marks a significant milestone in Puerto Rico’s path toward a cleaner, more resilient energy future, further supporting the island’s economic growth and climate goals.
Source: SOLARQUARTER
