AES has yet to present plans for LNG conversion

By THE STAR STAFF

AES Puerto Rico has not yet presented its proposal to the Puerto Rico Energy Bureau (PREB) regarding the conversion of its coal-fired power plant in Guayama to liquefied natural gas (LNG), according to remarks made by PREB officials on Thursday.

“We haven’t received any documentation,” PREB Chairman Edison Avilés confirmed during a public hearing.

Earlier this year, the government repealed the 2028 ban on coal use, effectively extending AES’s contract to 2032. At the time, Puerto Rico Electric Power Authority (PREPA) Executive Director Mary Carmen Zapata said she had initiated talks with AES to prolong the plant’s operations, allowing time to retrofit two of its units to run on LNG.

The coal ban will remain suspended until viable alternatives are identified to replace the 450 megawatts of electricity produced by the AES facility -- an amount that represents roughly 25% of Puerto Rico’s total energy output and plays a critical role in maintaining grid stability.

AES has operated under a power purchase agreement with PREPA since 1994, which has been amended three times. Although a 2019 law mandates a transition to 100% renewable energy by 2050, energy officials have acknowledged that a replacement for the AES plant will not be ready by the original 2028 deadline.