Commitment from Loan Programs Office to support construction of solar PV and energy storage in Puerto Rico; systems are expected to enhance Puerto Rico’s grid resilience, lower energy costs, and reduce the need for fossil fuel generation
January 17, 2025 05:07 PM Eastern Standard Time
NEW YORK–(BUSINESS WIRE)–Convergent Energy and Power (Convergent), a leading provider of energy storage solutions in North America, today announced the closing of its $584.5 million guaranteed loan facility from the U.S. Department of Energy (DOE) Loan Programs Office (LPO) to build a solar photovoltaic (PV) system with an integrated battery storage system and three stand-alone battery storage systems across Puerto Rico. Convergent’s solar PV and battery storage systems will play a vital role in improving Puerto Rico’s energy resilience and affordability while helping Puerto Rico meet its ambitious clean energy and climate goals.
“Convergent has a long history of supporting an energy landscape that is less expensive, more reliable, and increasingly sustainable,” said Convergent’s CFO and Co-Founder, Frank Genova. “As a leading developer of energy storage and solar PV systems, we have the expertise—and the capital—to bring Puerto Rico’s electric grid into the future. We look forward to enhancing grid reliability for communities across Puerto Rico.”
Convergent’s solar-plus-storage installation in the municipality of Coamo will be a 100 MW solar PV system paired with a 55 MW/55 MWh battery storage system. Three utility scale stand-alone battery storage systems are planned for the municipalities of Caguas, Peñuelas, 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.
Widescale solar and battery storage deployment can help benefit communities across the island by reducing Puerto Rico’s high energy costs, which, on average, are significantly higher than for the continental United States.
The clean, affordable electricity generated by these systems can replace some of the power produced by Puerto Rico’s diesel and coal plants, which would reduce pollution and contribute to the avoidance of carbon dioxide emissions.
Convergent is working with the Puerto Rico Department of Economic Development and Commerce to establish an integrated apprenticeship and hiring plan that will align with the municipal, commonwealth, and federal goals to prioritize workforce diversity and minority and women-owned business enterprises as subcontractors where commercially feasible. The systems are expected to create approximately 540 construction jobs.
Terms of the $584.5 Million Guaranteed Loan Facility
Total Guaranteed Loan Facility Amount $584.5 Million ($559.4 million in principal and $25.1 million in capitalized interest)
Interest Rate U.S. Treasury rate based
Maturity Date June 2050
The closing of this DOE guaranteed loan facility follows receipt of a conditional commitment on December 18, 2024.
For more information, review the DOE’s announcement blog.
About Convergent Energy and Power
Convergent Energy and Power (Convergent) is a leading provider of energy storage solutions in North America. Convergent has over a decade of experience financing and managing all aspects of the energy storage development cycle to help customers reduce electricity costs and increase reliability. The company’s commercial, industrial, and utility-scale assets can yield seven-figure savings while advancing the clean energy transition. Convergent’s proprietary asset management platform, PEAK IQ® leverages machine learning and deep market knowledge to optimize asset performance and maximize value. Convergent has over $1bn invested in or committed to assets in operation or under development across North America. For more information, visit convergentep.com or follow us on LinkedIn.
Contacts
Convergent Press Contact
Kate Siskel
SVP, Marketing and Communications
Convergent Energy and Power
ksiskel [at] convergentep.com
917-508-0274