The Puerto Rico Electric Power Authority (PREPA) has finalized a 15-year power purchase agreement with Polaris Renewable Energy for a 71.4 megawatt battery energy storage system in the municipality of Salinas.
The project, expected to come online in early 2028, will provide grid stabilization and peak load management for Puerto Rico's notoriously fragile electrical system. It will be capable of discharging for up to four hours, storing energy generated from solar farms during daylight hours for use in the evening peak.
Polaris, a Canadian renewable energy company with existing operations in Latin America, will invest approximately $95 million in the project. 'This is a critical step toward modernizing Puerto Rico's grid and meeting our renewable energy targets,' said PREPA executive director Josué Colón.
Federal funding support
The project received $38 million in conditional commitments from the U.S. Department of Energy's Grid Resilience and Innovation Partnerships program, funded by the Inflation Reduction Act. Puerto Rico has been allocated over $1 billion for grid improvements following Hurricane Maria and subsequent storms.
Environmental groups welcomed the announcement but urged PREPA to accelerate deployment. 'Every megawatt of storage is a megawatt that can help prevent blackouts,' said Ingrid Vila Biaggi of Cambio PR.
This is a critical step toward modernizing Puerto Rico's grid and meeting our renewable energy targets of 40% by 2030.
The project will create an estimated 120 construction jobs and 8 permanent operational positions. Polaris has committed to using local labor and materials where feasible.
