Convergent Energy and Power gets DOE loan to enhance Puerto Rico’s energy resilience

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Convergent Energy and Power, a leading North American provider of solutions, has secured a $584.5 million guaranteed loan from the U.S. Department of Energy (DOE). This significant financial commitment will fund the construction of a solar photovoltaic (PV) system with integrated battery storage and three standalone systems (BESS) in Puerto Rico. The initiative aims to modernize the island’s fragile energy grid, improve reliability, and reduce energy costs while advancing Puerto Rico’s goals.

What Does This Investment Mean for Puerto Rico’s Clean Energy Transition?

This project supports Puerto Rico’s ambitious target of achieving 100% by 2050, as outlined in the Puerto Rico Energy Public Policy Act. It also aligns with the Biden Administration’s Justice40 Initiative, which directs 40% of federal investments to disadvantaged communities.

The installations include a 100 MW solar PV system with a 55 MW/55 MWh battery storage system in Coamo and standalone BESS facilities in Caguas, Peñuelas, and Ponce, providing a combined capacity of 225 MW (900 MWh). These systems are designed to feed directly into Puerto Rico’s grid, generating approximately 200,000 MWh of clean energy annually. By reducing reliance on costly diesel and coal generation, the project is expected to lower electricity prices, which currently average significantly higher than those on the U.S. mainland.

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How Will This Project Benefit Puerto Rican Communities?

Convergent’s initiative is set to address critical challenges facing Puerto Rico’s energy sector. Grid instability and frequent outages have plagued the island, particularly in the aftermath of natural disasters. By incorporating renewable energy sources and battery storage, these systems will bolster grid resilience and provide much-needed stability.

Additionally, the project is estimated to reduce carbon dioxide emissions by nearly 2.5 million tonnes annually, equivalent to the energy use of approximately 335,000 homes. The deployment of solar and battery systems will contribute to cleaner air, improved public health, and a more sustainable energy landscape.

Economic Advantages of the DOE Loan

The $584.5 million loan comprises $559.4 million in principal and $25.1 million in capitalized interest, with a maturity date in June 2050. Offered through the DOE’s Energy Infrastructure Reinvestment (EIR) program, the financing supports the replacement of aging, polluting energy infrastructure with clean, renewable alternatives. This funding mechanism, part of President Biden’s Inflation Reduction Act, underscores the administration’s commitment to revitalizing energy communities and driving economic growth.

How Is Workforce Development Integrated Into the Project?

The construction phase of the project is expected to create approximately 540 jobs, with 20 full-time positions once operational. Convergent is collaborating with the Puerto Rico Department of Economic Development and Commerce (DDEC) to prioritize workforce diversity and local hiring. At least 15% of total work hours during construction will be allocated to apprenticeship programs, ensuring skills training and economic opportunities for residents.

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Convergent is also committed to engaging minority- and women-owned businesses as subcontractors wherever commercially viable. This comprehensive workforce strategy reflects the company’s dedication to fostering inclusive economic growth while addressing Puerto Rico’s energy challenges.

What Makes Convergent a Leader in Energy Storage Solutions?

With over a decade of experience in energy storage development, Convergent Energy and Power has established itself as a pioneer in the industry. Its proprietary platform, PEAK IQ, uses machine learning to optimize asset performance, maximizing efficiency and value for customers. The company manages commercial, industrial, and utility-scale projects, with over $1 billion invested in assets across North America.

Frank Genova, Convergent’s CFO and co-founder, emphasized the company’s expertise in delivering sustainable energy solutions. “We have the expertise—and the capital—to bring Puerto Rico’s electric grid into the future, enhancing grid reliability for communities across the island,” Genova stated.

What Is the Broader Context of the DOE’s Commitment to Puerto Rico?

This investment is part of a broader federal effort to modernize Puerto Rico’s energy infrastructure. In December 2022, President Biden allocated $1 billion to establish the Puerto Rico Energy Resilience Fund (PR-ERF), which finances renewable and resilient energy projects. The DOE has also supported numerous grid modernization initiatives, signaling a long-term commitment to the island’s sustainable energy transition.

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Across all programs, the DOE Loan Programs Office has received 182 applications for projects nationwide, totaling over $278.9 billion in requested loans. This robust pipeline demonstrates growing interest in clean energy investments and the critical role of federal support in driving innovation.

Convergent Energy and Power’s solar PV and battery storage project represents a transformative step for Puerto Rico’s energy sector. By enhancing grid resilience, reducing costs, and lowering emissions, this initiative not only aligns with Puerto Rico’s renewable energy targets but also exemplifies the potential of public-private partnerships to deliver meaningful change. With strong federal backing and a focus on community benefits, Convergent is poised to play a pivotal role in shaping Puerto Rico’s energy future.


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