Convergent Energy and Power (Convergent), a provider of energy storage solutions in North America, has received a conditional commitment for a loan guarantee of up to $559.4 million from the U.S. Department of Energy Loan Programs Office (LPO) for its subsidiaries to build a solar photovoltaic (PV) system with an integrated battery storage system and three stand-alone battery storage systems across Puerto Rico.
The systems are expected to enhance Puerto Rico’s grid resilience, reduce the need for fossil fuel generation, and lower energy costs.
While 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, Penuelas, and Ponce.
The systems are expected to generate power directly to Puerto Rico’s grid and provide energy storage benefits necessary for Puerto Rico to achieve 100% clean energy resources by 2050. They are anticipated to contribute to the avoidance of nearly 2.5 million tons of CO2 equivalent emissions on an annual basis by reducing the need to operate fossil fuel powered generation.
LPO borrowers develop and implement a Community Benefits Plan ensuring community and labor engagement, improving the well-being of residents and workers, and incorporating labor standards during construction, operations, and throughout the life of the loan guarantee.
The conditional commitment indicates DOE’s objective to finance the project, however, DOE is expected to complete an environmental review, and the company should assure certain technical, legal, environmental, commercial, and financial conditions before the Department initiates entering into definitive financing documents and fund the loan guarantee.
