U.S. Energy Department Finalizes $584.5 Million Loan Guarantee for Convergent Energy’s Solar and Storage Projects in Puerto Rico

The U.S. Energy Department on Jan. 17 finalized a $584.5 million loan guarantee to subsidiaries of Convergent Energy and Power to fund a solar photovoltaic system with an integrated battery energy storage system and three separate battery storage projects across Puerto Rico. The initiative is part of the Biden administration’s commitment to modernize and rebuild Puerto Rico’s power grid.

The solar PV facility is expected to provide around 200,000 MWh of energy yearly directly into Puerto Rico’s grid, with the separate battery storage installations providing up to 900 MWh of capacity. The systems are projected to develop grid stability and reliability by including production and energy storage capacity near load centers. Battery storage utilization and widescale solar usage has benefited communities across the island, by improving grid resilience and reliability to extreme weather and lower Puerto Rico’s high energy costs. Moreover, the project is expected to reduce 2.5 million tonnes of carbon dioxide equivalent emissions annually by reducing the need for fossil fuel powered generation.

The funding is part of a $1 billion effort focused on the island’s most vulnerable residents, helping increase resilience and lowering energy bills. The $1 billion Puerto Rico Energy Resilience Fund, or PR-ERF, established in December 2022, aims to enhance energy resilience for vulnerable households and communities in Puerto Rico. The island strengthened its renewable portfolio standard in 2019, adopting a goal of 100 percent renewable energy by 2050.

Convergent’s battery storage systems and solar PV can both increase and permit renewable energy generation while playing a key role in enhancing energy affordability and resilience. These projects can also assist Puerto Rico fulfill its climate policy and clean energy goals. Financing for this project is offered through the Energy Infrastructure Reinvestment, or EIR, initiative established by the 2022 Inflation Reduction Act. The EIR supports projects that retool, repower, repurpose, or replace energy infrastructure that has ceased operations or that enable operating energy infrastructure to avoid, reduce, utilize, or sequester air pollutants or greenhouse gas emissions.