S&C Advises U.S. Department of Energy on $861.3 Million Loan Guarantee to Finance Solar Energy Projects in Puerto Rico

The U.S. Department of Energy, through its Loan Programs Office, closed an $861.3 million loan guarantee to finance the construction of two solar photovoltaic farms equipped with battery storage and two standalone battery energy storage systems in Puerto Rico. The facilities will be located in the municipalities of Guayama (Jobos) and Salinas and will help deliver clean, reliable and affordable power to communities throughout Puerto Rico.

The borrower is Clean Flexible Energy, LLC, which is indirectly owned by The AES Corporation and TotalEnergies Holdings USA, Inc. and is managed under a joint venture agreement between the two companies.

The project-Project Marahu-comprises 200 megawatts of solar photovoltaic and up to 285 MW (1,140 MWh) of stand-alone BESS capacity. The solar PV installations will produce enough energy to power approximately 43,000 homes annually and enhance Puerto Rico's grid reliability and energy security. Battery storage will allow the project to continue to provide energy to residents even during adverse weather conditions. The operation of the solar and storage systems is expected to eventually replace existing fossil fuel-based generation and reduce emissions by nearly 2.7 million tons of CO2e per year, an amount roughly equivalent to the annual emissions of around 533,000 gasoline-powered passenger vehicles.

This loan guarantee is one of a series of actions the DOE has taken to strengthen Puerto Rico's energy resiliency following the aftermath of Hurricanes Irma and María in 2017.

The S&C team advising the DOE included John Estes, Benjamin Kent, Isaac Wheeler and Nick Baker.