US Energy Dept. awards loan for battery storage project
- The San Juan Daily Star
- 9 hours ago
- 2 min read
By THE STAR STAFF
The U.S. Department of Energy’s (DOE) Office of Energy Dominance Financing has closed a $489.4 million loan to support new battery storage projects in Puerto Rico, an investment federal officials say will help stabilize the island’s fragile electrical grid and reduce long-term power costs for residents.
The loan, awarded to Amanecer Puerto Rico LLC, a subsidiary of Pattern Energy, is expected to generate roughly $312.5 million in electricity cost savings over 25 years, according to DOE estimates. The financing is part of the Trump administration’s broader push to strengthen U.S. energy infrastructure and reduce reliance on foreign-controlled supply chains.
“This investment will strengthen Puerto Rico’s electric grid, lower electricity costs, support American manufacturing, and provide a pathway for the reliable, dispatchable power needed to deliver affordable, reliable, and secure energy for the people of Puerto Rico,” said Gregory A. Beard, director of the aforementioned DOE office.
Puerto Rico has struggled with chronic outages and prolonged service interruptions for years, with widespread blackouts imposing steep costs on households, businesses and critical facilities. DOE officials said the financing was restructured after a comprehensive review to align with the administration’s priorities of lowering energy costs and bolstering domestic manufacturing.
The loan will fund 220 megawatts of battery energy storage systems in Arecibo and Santa Isabel, using U.S.-manufactured battery technology. DOE said the systems will be capable of providing backup electricity for more than 100,000 customers during shortages and could help avoid an estimated 13 million customer interruption hours based on 2025 grid performance.
The project also includes a pathway for future development of natural gas-fired generation intended to improve grid stability and enhance Puerto Rico’s long-term energy security.
Since 2025, the DOE has issued and renewed emergency orders under Section 202(c) of the Federal Power Act to authorize critical generation needed to maintain reliable service on the island. The agency has also supported vegetation management and transmission maintenance ahead of peak demand periods and hurricane season.
DOE officials said the new financing complements those emergency actions.