The Financial Oversight and Management Board (FOMB) approved, with conditions, several contracts proposed by the Puerto Rico Electric Power Authority (PREPA) to add battery storage capacity associated with existing renewable energy assets and address short-term reliability needs as the system continues to operate with limited generation reserves.
According to letters dated May 8 and signed by the Board’s General Counsel, Jaime A. El Koury, the determinations were issued pursuant to the Board’s contract review policy and Section 204(b)(2) of the PROMESA Act, which requires certain government agreements to promote competition and remain consistent with the certified fiscal plan.
Part of the approvals focuses on expanding storage capacity through the Accelerated Storage Addition Program (ASAP), a standard-offer mechanism designed to integrate new battery systems into independent power producer plants that already have permits, operational interconnection points and existing power purchase and operating agreements. In two resolutions, the Board authorized amendments to standard-offer agreements between PREPA and several providers to develop facilities that will inject energy into the grid through interconnection points.
Among the projects cited, the Board mentioned the Solaner Puerto Rico One battery system, which is expected to contribute 40 megawatts (MW) of capacity, and Xzerta-Tec Solar I, with 120 MW.
The contracts contemplate 20-year terms beginning upon commercial operation, with the option for two additional five-year extensions, subject to review by the Puerto Rico Energy Bureau (PREB), according to the Board.
