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DOE Closes $489.4 Million Loan for Puerto Rico Batteries, Drops Planned Solar

The move signals a shift toward dispatchable, fossil-friendly financing favoring large-scale battery storage for improved grid reliability with lower projected consumer bills.

Overview

  • The Department of Energy’s Office of Energy Dominance Financing closed a $489.4 million loan to Amanecer Puerto Rico to fund 220 megawatts of battery energy storage sited in Arecibo and Santa Isabel.
  • The department says the storage will back up power for more than 100,000 customers, avoid about 13 million customer interruption hours, and save Puerto Rican households and businesses roughly $312.5 million in electricity costs over 25 years.
  • The finalized loan announcement omits an explicitly funded 70-megawatt solar project that had been part of a Biden-era conditional commitment and instead references support for a pathway to future natural-gas-fired generation.
  • The change follows a 2025 DOE reprioritization that redirected and later canceled $350–365 million intended for rooftop solar and storage, reflecting the office’s new emphasis on dispatchable and reliability-focused projects.
  • The investment aims to reduce frequent blackouts on the island and could accelerate plans for dispatchable fuel sources and grid upgrades, with observers watching whether the shift slows large-scale solar deployment in Puerto Rico.