The U.S. Department of Energy has announced an $861 million loan guarantee to build two solar photovoltaic farms in Puerto Rico as persistent power outages plague the U.S. territory

The U.S. Energy Department said on Tuesday it closed an $861 million loan guarantee to finance the construction of two solar photovoltaic farms and two battery storage systems in Puerto Rico. WHY IT'S IMPORTANT The power grid of Puerto Rico,

A Department of Energy loan will help Puerto Rico pursue its clean energy goals, supporting the construction of two solar farms equipped with battery storage and two standalone battery energy storage systems.

The loan guarantee will allow for the development of up to 200MW of solar PV and 285MW/1,140MWh of standalone BESS in Puerto Rico.

The newly finalized loan guarantee to Clean Flexible Energy — managed by a joint venture agreement between AES Corp. and TotalEnergies Holdings USA — will finance the construction of two solar farms equipped with battery storage,