Energy Bureau puts Accelerated Storage Addition Program on hold

The decision comes as four Phase 1 Standard Offer Agreements totalling 110 megawatts of battery energy storage systems remain unsigned due to disagreements between LUMA Energy and project developers.

In order to prioritize renewable energy procurement

By THE STAR STAFF

The Puerto Rico Energy Bureau’s (PREB) Public Service Regulatory Board has announced the temporary suspension of actions related to the Accelerated Storage Addition Program (ASAP), citing the need to prioritize regulatory actions on renewable energy procurements.

The decision comes as four Phase 1 Standard Offer Agreements totalling 110 megawatts (MW) of battery energy storage systems remain unsigned due to disagreements between LUMA Energy and project developers.

The PREB has stated that its focus will shift toward supporting Executive Order OE-2025-047, which was signed by Gov. Jenniffer González Colón recently and aims to advance renewable energy projects on the island.

The order is expected to provide a more efficient path to securing new generation resources within firm deadlines, the PREB said.

While the ASAP docket is put on hold, the PREB emphasized that the action does not signify a dismissal of the case or release parties from contractual or regulatory obligations. The PREB may choose to reopen the case in the future should it be deemed necessary for the public interest and in alignment with Puerto Rico’s energy policy.

LUMA Energy and ASAP proponents have been reminded that the need for additional energy storage capacity is limited and may become unnecessary depending on the outcomes of the renewable energy procurement process outlined in last week’s executive order.

Regarding the energy procurement, the PREB has issued the request for proposal (RFP) or criteria for new renewable energy projects.

The RFP provides an opportunity for projects previously submitted in Tranche 0, Tranche 1, Tranche 2, Tranche 3 and Tranche 4 tenders and that have completed interconnection studies, in the process of evaluation or whose processing allows for the start of construction to submit proposals for immediate evaluation with the intent that the Puerto Rico Electric Power Authority (PREPA) file accepted proposals for approval by PREB, no later than Dec. 15 of this year.

All contract terms for energy storage resources shall be 20 years, and contract terms for renewable energy resources will be 25 years. Energy resources must be at least 20 MW.

The criteria, which comes because of the governor’s executive order, seeks an accelerated process to allow projects to benefit from certain federal tax credits that are due to be phased out.

The order says that after PREB issues evaluation criteria for PREPA to follow, PREPA must seek proposals from bidders who participated in the Tranches 1 to 4 tenders, allowing them 10 days to submit updated project proposals. After that, PREPA will evaluate the new proposals and, when appropriate, recommend approval within a maximum of 30 days.