WASHINGTON, Oct 15 (Reuters) - 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 U.S. territory, has been

battered by hurricanes in recent years, and people in remote

mountain towns were left without power for nearly a year after

Hurricane Maria in 2017. Between 3,000 and 4,600 people died

after Maria knocked out power, studies say.

The borrower is Clean Flexible Energy LLC, an indirect

subsidiary of AES ( AES ) and TotalEnergies Holdings USA

. The financing was closed by the Energy Department's

Loan Programs Office.

KEY QUOTE

"President (Joe) Biden and Vice President (Kamala) Harris

understand that access to reliable energy is a matter of life or

death - especially in the face of climate change-fueled natural

disasters that are increasing in intensity and frequency," said

U.S. Energy Secretary Jennifer Granholm.

BY THE NUMBERS

Annually, the solar installations of the project known as

Marahu will produce enough electricity to power about 43,000

homes, and enhance Puerto Rico's grid reliability and energy

security, the department said. Marahu comprises 200 megawatts of

solar power and up to 285 MW of standalone battery energy

storage, it said.

The facilities will be located in the municipalities of

Guayama and Salinas. Marahu supports the administration's 

Justice40 Initiative, which established the goal that 40% of the

overall benefits of certain federal investments, including LPO

financing, flow to disadvantaged communities, which includes

most of Puerto Rico's 3.2 million U.S. citizens.