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DOE Financing Office Closes Loan for Puerto Rico Grid Improvements

The U.S. Department of Energy has closed a $489.4 million loan to help lower electricity costs and strengthen Puerto Rico’s electric grid.

WHAT YOU NEED TO KNOW
  • The DOE closed a $489.4 million loan to Pattern Energy subsidiary Amanecer Puerto Rico LLC.
  • The project includes 220 megawatts of battery energy storage systems in Arecibo and Santa Isabel.
  • Expected savings for Puerto Rican families and businesses total $312.5 million over 25 years.
  • The battery storage systems are designed to provide backup electricity to over 100,000 customers.

The U.S. Department of Energy finalized a $489.4 million loan to Amanecer Puerto Rico LLC, a subsidiary of Pattern Energy, aiming to lower electricity costs and strengthen the island’s electric grid, the US Department of Energy announced on August 5, 2026.

Financed through the agency’s Office of Energy Dominance Financing, the investment stems from provisions in President Trump’s Working Families Tax Cuts Act. Federal officials report that the loan is expected to save Puerto Rican families and businesses approximately $312.5 million in electricity costs over the next 25 years.

EDF Director Gregory A. Beard stated that the funding is intended to strengthen infrastructure, lower energy bills, and establish a pathway for reliable, dispatchable power. Following a review by the Trump Administration, the department restructured the original financing terms to align with federal priorities regarding energy security and domestic manufacturing.

Grid Improvements and Storage

A total of 220 megawatts in battery energy storage systems will be deployed in Arecibo and Santa Isabel. The US Department of Energy confirmed that these installations will rely on American-manufactured battery technology and secure domestic supply chains.

Backup electricity from these battery installations is projected to serve more than 100,000 customers during power shortages. Based on 2025 operating data, the Department of Energy estimates that the storage systems will help avoid roughly 13 million customer interruption hours.

Frameworks established under the financing also outline a pathway for future natural gas-fired generation to supply dispatchable power and stabilize the grid. The targeted investments address chronic outages and service interruptions that have repeatedly affected Puerto Rican households, businesses, and critical infrastructure.

Federal activity surrounding the island's energy network includes immediate grid management alongside long-term financing. Since 2025, the DOE has issued and renewed emergency orders under Section 202(c) of the Federal Power Act to maintain critical generation, while backing vegetation management and transmission line maintenance ahead of peak demand periods and hurricane seasons.

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