Convergent Energy Secures $585M Loan For Clean Energy

Convergent Energy and Power (Convergent), a leader in energy storage solutions, has completed a major $584.5 million guaranteed loan from the U.S. Department of Energy's (DOE) Loan Programs Office (LPO). This funding represents a critical step forward for Puerto Rico in its pursuit of a more reliable, affordable, and sustainable energy system-one that aligns with the island's ambitious goal of achieving 100% clean energy by 2050.

A new-age energy project of solar photovoltaic (PV) systems, with its related battery storage solution, will be constructed using loan funding. Such installations will eliminate the two greatest ills from Puerto Rico's power sector: excessive costs and unreliable supply. Integrating renewable technologies in such a manner can reduce an island's dependence on expensive, pollution-causing fossil fuels by switching to cleaner and more efficient energy sources.

Frank Genova, CFO and Co-Founder of Convergent, highlighted the transformative potential of these developments. “These systems are key to an energy future that is less expensive, more reliable, and increasingly sustainable,” Genova stated, emphasizing the importance of enhancing grid reliability for communities across Puerto Rico.

The ambitious plan includes the construction of a 100 MW solar PV system paired with a 55 MW/55 MWh battery storage facility in Coamo. Additionally, three standalone battery storage systems will be deployed in the municipalities of Caguas, Peñuelas, and Ponce. Together, these projects will significantly enhance the island’s energy resilience by reducing its reliance on diesel and coal plants, which have long been the primary sources of power.

Puerto Rico’s energy landscape has been marked by some of the highest costs in the United States, compounded by frequent power outages and vulnerability to natural disasters. The widespread adoption of solar energy and battery storage promises to alleviate these issues, offering residents a cleaner and more cost-effective energy alternative. Furthermore, the project is expected to make a substantial contribution to global and regional climate goals by cutting carbon dioxide emissions, a direct result of reduced fossil fuel consumption.

In addition to its environmental and economic benefits, the initiative also underscores a strong commitment to job creation and workforce inclusion. The construction phase alone is expected to generate approximately 540 jobs, with a deliberate focus on promoting diversity. Convergent is partnering with the Puerto Rico Department of Economic Development and Commerce to develop a robust apprenticeship and hiring strategy. This plan prioritizes collaboration with minority and women-owned business enterprises, ensuring equitable opportunities within the local workforce.

This initiative is part of Puerto Rico’s broader clean energy strategy, which has gained momentum following a series of devastating hurricanes that exposed the vulnerabilities of the island’s energy infrastructure. The deployment of solar and battery systems will not only fortify the grid against future disruptions but also ensure a more stable energy supply for residents and businesses.

The announcement of the DOE loan builds upon a conditional commitment made in December 2024, signifying the federal government’s confidence in the project’s viability and impact. For Puerto Rico, this collaboration with Convergent represents a significant step toward achieving energy independence and sustainability, as well as fostering economic growth and resilience.

As the island transitions away from fossil fuels, the success of projects like this serves as a model for other regions facing similar challenges. With renewable energy technologies becoming increasingly accessible and efficient, initiatives like Convergent’s reflect the potential for a global shift toward sustainable energy systems. For Puerto Rico, the journey toward a greener future has been accelerated by the collective efforts of government entities, private enterprises, and local communities working together to achieve a common goal.