U.S. DOE Announces $584.5 Million Loan Guarantee to Subsidiaries of Convergent Energy and Power Inc. to Build Solar PV and Energy Storage in Puerto Rico

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Convergent will construct and function utility-scale solar-plus-storage in Puerto Rico, enhancing grid resilience and decreasing prices for ratepayers.

The U.S. Division of Vitality Mortgage Packages Workplace (LPO) at this time introduced the closing of a $584.5 million ($559.4 million in principal and $25.1 million in capitalized curiosity) mortgage assure to subsidiaries of Convergent Vitality and Energy Inc. (Convergent), a number one supplier of power storage options in North America. The mortgage assure will finance a photo voltaic photovoltaic (PV) system with an built-in battery power storage system (BESS) and three stand-alone BESS initiatives throughout Puerto Rico—underscoring the Biden-Harris Administration’s deep dedication to rebuilding and modernizing Puerto Rico’s electrical grid. Convergent submitted its mortgage software to LPO in August 2023.

The photo voltaic PV facility would ship roughly 200,000 MWh of power yearly immediately into Puerto Rico’s grid––with the stand-alone BESS installations offering as much as 900 MWh of storage capability. The methods are anticipated to reinforce Puerto Rico’s grid reliability and stability by including era and power storage capability close to load facilities. Widescale photo voltaic and battery storage deployment has been confirmed to profit communities throughout the island by rising grid reliability and resilience to excessive climate and decreasing Puerto Rico’s excessive power prices, which, on common, are considerably larger than the U.S. common.

The mission can also be anticipated to consequence within the avoidance of practically 2.5 million tonnes of carbon dioxide equal emissions on an annual foundation by decreasing the necessity to function fossil fuel-powered era. This quantity is equal to the emissions of 335,000 homes’ power utilization per 12 months.

Convergent’s solar-plus-storage set up within the municipality of Coamo can be a 100-MW photo voltaic PV system with a 55 MW (55 MWh) BESS. The BESS installations within the municipalities of Caguas (25MW/100MWh), Peñuelas (100MW/400MWh), and Ponce (as much as 100MW/400MWh) could have a capability of as much as 225 MW (900 MWh).

Convergent’s photo voltaic PV and battery storage methods can each enhance and allow renewable power era whereas taking part in a significant function in enhancing power resilience and affordability. These initiatives also can assist Puerto Rico meet its bold clear power and local weather coverage objectives. The Puerto Rico Vitality Public Coverage Act (Act 17) requires Puerto Rico’s utility to stop all coal-fired power era by 2028 and shift to a 100% renewable power combine by 2050.  To assist Puerto Rico attain 100% clear power sources by 2050, the photo voltaic PV system can generate energy on to Puerto Rico’s grid, and the battery storage system can present advantages essential for transmission system resilience.

This mission will assist roughly 540 building jobs and round 20 full-time jobs as soon as absolutely operational. LPO debtors are required to develop and finally implement a complete Community Benefits Plan that ensures significant neighborhood and labor engagement, improves the well-being of residents and staff, and incorporates robust labor requirements throughout building, operations, and all through the lifetime of the mortgage assure. The corporate is working with its building companions and native businesses such because the Puerto Rico Division of Financial Growth and Commerce (DDEC) to make the most of Registered Apprentice Packages. Convergent expects to have apprentice program staff make up at the very least 15% of whole work hours.  These packages might be established with the vast majority of members originating from communities native to the initiatives. This funding helps the Biden-Harris Administration’s Justice40 Initiative, which units a aim that 40% of the general advantages of sure federal funding in local weather, clear power, and different areas circulation to deprived communities which might be marginalized by underinvestment and overburdened by air pollution.

The financing for this mission is obtainable via the Energy Infrastructure Reinvestment (EIR) program beneath Title 17 Clear Vitality Financing (Part 1706). Established by President Biden’s Inflation Discount Act, EIR can finance initiatives that retool, repower, repurpose, or exchange power infrastructure that has ceased operations or that allow working power infrastructure to keep away from, scale back, make the most of, or sequester air pollution or greenhouse fuel emissions. In assist of President Biden’s efforts to assist financial revitalization in power communities, this mission will help within the alternative of coal power infrastructure with clear power services — creating new job alternatives whereas decreasing dangerous emissions.

At the moment’s announcement is the most recent in a string of actions DOE and the Biden Administration have taken to assist strengthen Puerto Rico’s grid modernization and power resiliency. In December 2022, President Biden approved $1 billion for the institution of the Puerto Rico Energy Resilience Fund (PR-ERF), which is run by DOE’s Grid Deployment Workplace. The PR-ERF is a separate federal funding supply to drive key investments in renewable and resilient power infrastructure in Puerto Rico.

Throughout all LPO’s packages, DOE has attracted 182 purposes for initiatives throughout the nation totaling over $278.9 billion in requested loans and mortgage ensures, as of December 2024. For extra details about Convergent, learn the conditional commitment blog post and go to LPO’s portfolio project page.