Program to fast-track energy storage proposed for Puerto Rico

Luma Energy has presented a battery energy storage system (BESS) plan to Puerto Rico’s state power utility PREPA and other stakeholders.

The proposal, dubbed “accelerated storage addition program” or ASAP, would fast-track the incorporation of BESSs, reducing the implementation window in the current renewable energy and storage procurement process, according to information released by the island’s energy regulator PREB.

ASAP envisions having independent power producers (IPPs) with power purchase and operating agreements (PPOAs) to implement a BESS at their plants.

“IPPs have existing points of interconnection so there is no need for interconnection construction and minimal studies required,” Luma states.

The private operator adds that “this additional BESS capacity would be dispatched by Luma to provide voltage and frequency support and ancillary services, thereby providing improved system reliability and reduction of load shedding events.”

Apart from PREB, Luma has met with the island’s public-private partnerships authority and financial oversight and management board, and generators.

Luma highlights that generators have raised questions about the regulatory approval process, financing, and supply chain issues.

Regarding other BESS initiatives underway, Luma said these are not expected to be impacted by ASAP.

An initial term sheet is being drafted, which would be followed by a standard offer amendment to the PPOAs.

Luma took over distribution and transmission operations from PREPA for 15 years in June 2021.

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Source: PREB