EcoEléctrica to build 20-MW battery system in Peñuelas

The approval of the contract is part of a broader initiative known as the Accelerated Storage Addition Program, which aims to significantly increase the battery energy storage system capacity at EcoEléctrica’s generation facility.

By The Star Staff

The Financial Oversight and Management Board has officially approved a contract valued at $76.8 million that will enable EcoEléctrica to install a comprehensive 20-megawatt (MW) battery energy storage system (BESS) at its facilities in Peñuelas.

The decision marks a pivotal step in enhancing the energy infrastructure of the southern region.

EcoEléctrica has been operational since 2000 and is recognized for running a natural gas plant with a capacity of 540 MW. The plant plays a vital role in the island’s electricity supply, providing some 15% of its total power generation. The company’s investment partners include notable energy firms such as Naturgy from Spain, Engie from France, and Mitsui from Japan, highlighting its international backing and commitment to innovative energy solutions.

The approval of the contract is part of a broader initiative known as the Accelerated Storage Addition Program (ASAP), which aims to significantly increase the BESS capacity at EcoEléctrica’s generation facility. The enhancement is crucial for stabilizing the energy grid and improving overall resilience, particularly in the face of natural disasters. LUMA Energy, the private operator responsible for the Puerto Rico Electric Power Authority’s transmission and distribution system, has indicated that the upgraded BESS capabilities could potentially expedite the restoration of power facilities by as much as 80 hours after a hurricane or other major disruptive events, thereby providing quicker recovery for the communities dependent on this energy supply.

The oversight board’s resolution and order, which authorized the contract, emphasized that the financial terms for Phase 1 of the ASAP are markedly lower than the initial cost estimates, making the project not only innovative but also economically viable.

The proposed contract is structured to last for 20 years, with provisions for two additional five-year extensions, while ensuring that the total maximum amount payable remains capped at $76.8 million. Further specifics detail that the storage capability payment price is set at $16,000 per MW per month, with a provision for an increase to $20,600 per MW per month should investment tax credits not be available.

In addition to the battery storage capabilities, the project will integrate full-station black start capability into EcoEléctrica’s facilities. This feature is particularly beneficial, as it enables the plant to restart independently in the event of a total grid failure, thereby enhancing the reliability and stability of the electricity supply. Consequently, the initiative is expected to lead to substantial cost savings for ratepayers in Puerto Rico.

The Puerto Rico Energy Bureau, the island’s energy sector regulator, granted its approval for the contract in January, further securing the regulatory framework needed for the project’s successful implementation.