SAN JUAN, Puerto Rico — On Friday, the U.S. Department of Energy announced its allocation of $1.2 billion in federal support aimed at bolstering renewable energy initiatives in Puerto Rico. This move is part of a broader strategy to decrease the island’s reliance on fossil fuels.

Included in the financing is a $585 million loan guarantee designated for a solar panel system that will generate 100 megawatts of power across four cities: Ponce, Caguas, Coamo, and Peñuelas. This system will integrate a significant 55-megawatt battery energy storage component.

Additionally, the Department has extended two conditional commitments, totaling over $489 million in loan guarantees for three battery energy storage systems earmarked for the municipalities of Arecibo and Santa Isabel. Furthermore, there is a loan guarantee of more than $133 million for a 32-megawatt solar panel installation in Yabucoa.

These developments collectively aim to enable the storage of 455 megawatts of clean energy. The capital city, San Juan, along with other areas, is also engaged in various solar energy projects, enhancing the island’s sustainable energy capacity.

Since Hurricane Maria struck in September 2017, causing extensive damage as a Category 4 storm, Puerto Rico has battled recurrent power outages due to its aging and underfunded electric grid. Notably, a widespread blackout occurred on December 31, significantly affecting New Year’s Eve celebrations across the island.

In response to the persistent energy challenges, Puerto Rico’s legislature enacted a law in 2019 outlining ambitious renewable energy goals: to achieve 40% of its electricity from renewables by 2025, 60% by 2040, and reaching a target of 100% by 2050.