Regulatory filing shows the 528-megawatt San Juan project remains in pre-construction, with LUMA, PREPA and Energiza divided over grid upgrades
The developers and operators behind Puerto Rico’s proposed 528-megawatt Energiza generation project reported this week that physical construction has yet to begin, even as the project advances through permitting, financing and interconnection studies.
The update came in a joint verified status report filed by LUMA Energy, the Puerto Rico Electric Power Authority (PREPA) and Energiza, LLC, in compliance with an August 21 order from the Puerto Rico Energy Bureau.
The filing confirms that the project remains entirely in its pre-construction phase. Financial close is targeted for December 31, 2026, with a Full Notice to Proceed expected on January 1, 2027. Construction is scheduled to start on May 1, 2027, under the guaranteed timeline established in the amended Power Purchase and Operating Agreement (PPOA).
The parties reported that updated interconnection studies are underway following Energiza’s January 2026 request to increase the plant’s nameplate capacity from 460 MW to 528 MW. LUMA received the revised application package and study payments in August and is finalizing its review. The entities are also evaluating alternative points of interconnection to replace the originally planned tie-in at the future Portuaria substation.
A significant financial dispute surfaced in the filing regarding responsibility for an estimated $168 million in network upgrades required to integrate the project into the grid. PREPA argues that the PPOA only assigns it responsibility for the $2.6 million point-of-interconnection facilities and that the utility is expressly shielded from additional transmission or distribution costs unless stated in the contract.
LUMA maintains that the standard interconnection agreement places upgrade costs on the interconnection customer and says it cannot execute the agreement or begin construction without certification of funds.
Energiza counters that the RFP process and its PPOA clearly excluded network upgrade costs from its obligations, noting that only the $2.6 million point-of-interconnection estimate was incorporated into the contract.
Despite the dispute, the project continues moving through its critical-path schedule, which extends through 2030. Major milestones include turbine deliveries in early 2029, backfeed power availability from PREPA and LUMA in mid-2029, first synchronization of the gas turbine in April 2030, substantial completion in October 2030, and a guaranteed commercial operation date of December 30, 2030.
No energy has been delivered to the grid, and the project is not yet capable of injecting power.
The filing also details extensive federal and local permitting activity tied to Energiza’s pursuit of U.S. Department of Energy Title 17 financing. Required environmental consultations include endangered species reviews, cultural resource assessments, floodplain studies and EPA air permitting. Several baseline studies were scheduled for completion in late August.
The Energy Bureau is asked to acknowledge receipt of the filing and deem the parties in compliance with its August 21 order. The report was verified by senior representatives of all three entities.
