US DOE provides USD-72.8m loan guarantee for microgrid project

The US Department of Energy (DOE) on Friday announced the closing of a USD-72.8-million (EUR 65.7m) loan guarantee to fund the development of a microgrid made up of a 15-MW solar installation and a 70-MWh battery long-duration energy storage system on tribal lands in California.

The project will see Viejas Band of Kumeyaay Indians purchase electricity through the project company under a long-term power purchase agreement (PPA) to support the operation of various commercial businesses, such as gaming, hospitality and retail facilities. The project is anticipated to create 250 construction jobs and eight permanent operations jobs.

The guarantee provided by DOE’s Loan Programs Office (LPO) will underpin a loan by US Bancorp Impact Finance to complete the construction of the microgrid system. DOE’s loan guarantee is also supported by anchor investments from US Bancorp Impact Finance and Starbucks. The project is further facilitated by a grant from the California Energy Commission.

The project developer is Indian Energy.

The announcement is the first under DOE’s Tribal Energy Financing Programme.

(USD 1 = EUR 0.902)

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