Regulator Says Facility Will Not Be Evaluated as Hybrid Solar-Plus Storage Project
The Puerto Rico Energy Bureau has ordered the Puerto Rico Electric Power Authority (PREPA) and Proponent No. 7—Greenbriar Sustainable Living Inc. and PBJL Energy Corp.—to resume good-faith negotiations and report within ten days on the status of their proposed Montalva Solar Farm and Battery Storage Project.
The July 23 directive comes after the developers sought regulatory intervention, arguing that PREPA’s prolonged inaction in evaluating the project threatens its viability and eligibility for federal Investment Tax Credits.
In its Resolution and Order, the Bureau clarified that the Montalva proposal will not be treated as a hybrid solar‑plus‑storage project for purposes of the accelerated evaluation process. Instead, the solar facility and battery system must continue to be negotiated and evaluated under separate contractual frameworks, consistent with the structure used in prior Tranche 4 procurements. While acknowledging that project‑specific adjustments may be warranted, the Bureau stressed that any revisions must not constitute “material or substantive departures” from previously approved agreements.
The ruling responds to a July 16 motion filed by Greenbriar and PBJL, who said negotiations with PREPA had stalled despite their compliance with all steps required under the accelerated review process. The developers told regulators they had submitted updated drafts of the Power Purchase Agreement, Operating Agreement, and Energy Storage Service Agreement, but PREPA had not provided comments, had not responded to their filings, and had not supplied the correct hybrid ESSA version that other proponents received.
A key dispute centers on PREPA’s assertion that the Montalva project is identical to a 2023 Settlement Agreement covering only a solar facility. The developers counter that the RFP proposal is materially expanded, describing it as a solar‑plus‑storage installation with a significantly larger footprint. The new design includes a 40‑megawatt battery system—expandable to 80 megawatts—and a solar field roughly 50 percent larger than the one contemplated in the earlier settlement. They argue that PREPA’s reliance on the legacy agreement contradicts the Bureau’s directives and is obstructing progress.
In their motion, Greenbriar and PBJL asked the Bureau to order PREPA to resume negotiations immediately, require written comments on all submitted documents within five business days, and affirm that the February 9, 2026 Best and Final Offer governs the project’s commercial terms. They also sought clarification that the expanded project qualifies under the accelerated RFP process and should not be constrained by the solar‑only settlement.
Under the July 23 order, PREPA and the developers must jointly inform the Bureau within ten days whether an agreement has been reached. If so, they must submit the proposed contracts for review within the same period. If not, they must file a joint status report identifying unresolved issues and detailing efforts to resolve them. The Bureau also warned PREPA that noncompliance could result in fines under Act 57‑2014.
The Energy Bureau has not yet ruled on the developers’ broader request for relief, but the order signals regulators’ expectation of swift progress. Greenbriar and PBJL caution that continued delays could jeopardize federal tax credit eligibility and slow Puerto Rico’s advancement toward its renewable‑energy goals.
