Convergent Energy and Power (Convergent) has received a conditional commitment from the US Government for a loan guarantee of up to $559m to deliver a portfolio of energy storage projects across Puerto Rico.
Convergent’s subsidiaries would use the funds to build a solar system with an integrated battery energy storage system (BESS) and three stand-alone battery storage systems across Puerto Rico.
Convergent’s solar-plus-storage installation in the municipality of Coamo will be a 100MW solar system paired with a 55MW/55MWh battery storage system.
Three utility scale stand-alone battery storage systems are planned for the municipalities of Caguas, Penuelas, and Ponce.
These systems would generate power directly to Puerto Rico’s grid and provide energy storage benefits necessary for Puerto Rico’s goal of achieving 100% clean energy resources by 2050.
These systems are expected to enhance Puerto Rico’s grid resilience, reduce the need for fossil fuel generation and lower energy costs.
The US Department of Energy Loan Programs Office (LPO) for a loan guarantee of up to $559.4m.
This conditional commitment indicates the Department of Energy’s intent to finance the project.
However, the DOE must complete an environmental review, while Convergent must satisfy certain technical, legal, environmental, commercial and financial conditions before the department can determine whether to enter into definitive financing documents and fund the loan guarantee.
“Enhancing grid reliability and sustainability in Puerto Rico is critical. We applaud the Department of Energy for recognizing Convergent Energy and Power’s track record of expertise in the energy storage and solar sectors through this conditional commitment from the U.S. Department of Energy Loan Programs Office,” said Convergent’s chief financial officer and co-founder, Frank Genova.
“We look forward to contributing to the modernization of Puerto Rico’s electric grid and advancing its clean energy goals.”