SAN JUAN, Puerto Rico — On Wednesday, the U.S. Department of Energy revealed a loan guarantee of $861 million aimed at developing two solar photovoltaic facilities in Puerto Rico. This initiative is a response to the continuous power outages that have impacted the island territory for an extended period.

The solar projects are set to be established in the coastal areas of Guayama and Salinas, with support from Clean Flexible Energy LLC, a subsidiary of both The AES Corporation and TotalEnergies Holdings USA Inc.

This effort is projected to enhance Puerto Rico’s energy infrastructure by adding up to 200 megawatts of solar generation alongside an additional 285 megawatts of energy storage capacity, as per the statements made by U.S. Energy Secretary Jennifer M. Granholm.

Officials estimate that the solar photovoltaic project will produce approximately 460,000 megawatts of energy, which could potentially supply electricity to around 43,000 households.

The timing of this announcement is significant, as Puerto Rico continues to face challenges with its power supply, largely attributed to an aging electric grid that suffered devastating damage during Hurricane Maria in September 2017 when it struck as a formidable Category 4 storm.

Even prior to the hurricane, the electric grid was already in a precarious condition due to inadequate investments and insufficient maintenance efforts.

Currently, fossil fuels account for about 94% of the electricity generated in Puerto Rico. Moving forward, the island is under an obligation to source 40% of its energy from renewable resources by next year and aims to increase this figure to 60% by 2040.