The US government announces $861 million for two solar farms in Puerto Rico

SAN JUAN, Puerto Rico — The U.S. Department of Energy announced an $861 million loan guarantee on Wednesday to build two solar photovoltaic farms in Puerto Rico as persistent power outages plague the U.S. territory.

The project would be located in the southern coastal towns of Guayama and Salinas and backed by Clean Flexible Energy LLC, a subsidiary of The AES Corporation and TotalEenrgies Holdings USA Inc.

It would add up to 200 megawatts of solar generation and another 285 megawatts of storage capacity to Puerto Rico’s grid, according to U.S. Energy Secretary Jennifer M. Granholm.

The solar photovoltaic project is expected to generate about 460,000 megawatts of energy, enough to power some 43,000 homes, officials say.

The announcement comes as Puerto Rico continues to struggle with ongoing outages blamed on a crumbling electric grid that was razed by Hurricane Maria when it hit the island as a powerful Category 4 storm in September 2017.

The grid, which is still being rebuilt, was in a fragile state even before the storm hit due to a lack of investment and maintenance.

Fossil fuels currently generate 94% of Puerto Rico’s electricity, with the island tasked with obtaining 40% of its energy from renewable sources by next year and 60% by 2040.