Polaris awards battery storage contract, advances $60 million Punta Lima project
By THE STAR STAFF
Canadian renewable energy company Polaris Renewable Energy Inc. has recently awarded a key supply contract to Trina Energy Storage Solutions for its planned battery energy storage project at Punta Lima in Naguabo, marking a major step forward in the island’s ongoing efforts to strengthen grid reliability through utility-scale energy storage.
The company announced last week that it has executed an agreement with Trina Storage to provide battery energy storage systems (BESS) for the Punta Lima project, which is being developed under Puerto Rico’s Accelerated Storage Addition Program (ASAP by its acronym in Spanish). The program was created to accelerate deployment of large-scale battery systems alongside existing generation facilities to improve grid resilience and reliability.
The contract award allows the project to move from the planning and contractual phase into equipment procurement and implementation, Polaris said.
The Punta Lima facility will consist of a 35.7-megawatt (MW) battery storage system with eight hours of duration. Under the terms of its agreement with the Puerto Rico Electric Power Authority (PREPA), the system will provide 71.4 MW of storage capability through two four-hour energy delivery blocks.
Polaris estimates total project costs will range between $55 million and $60 million, including the battery system, medium-voltage transformer, fees and balance-of-plant infrastructure. The company said it plans to fund the investment with cash on hand.
Once operational, the project is expected to contribute some $12.5 million in earnings before interest, taxes, depreciation, and amortization, or EBITDA, during its first year of operation.
The development is one of several storage projects being advanced under ASAP, which seeks to add battery capacity to Puerto Rico’s power system following years of reliability challenges, storm-related disruptions and generation shortfalls.
Polaris’ U.S. subsidiary, Polaris Power US Inc., secured its place in the program earlier this year when it executed a battery energy storage standard offer agreement with PREPA on June 5. Under that agreement, the company will receive monthly fixed and performance-based payments for providing energy storage services, including capacity and grid support.
Deliveries of battery containers from Trina Storage are scheduled for March and April 2027, with commercial operations currently expected to begin during the third quarter of 2027. The agreement has a 20-year term beginning on the project’s commercial operation date.
“The execution of the supply contract with Trina Storage is a significant milestone in advancing our investment in Punta Lima, moving the project from its contractual framework into equipment procurement and implementation,” Polaris CEO Marc Murnaghan said in a statement. “This investment reflects our confidence in Puerto Rico’s long-term energy transition and our commitment to delivering critical storage capacity that will enhance grid reliability and resilience.”
Trina Storage, a global utility-scale energy storage provider, has some 30 gigawatt-hours of battery storage projects either commissioned or under execution worldwide, including over six gigawatt-hours in Latin America and the Caribbean, according to the company.
Toronto-based Polaris Renewable Energy operates a portfolio of renewable energy assets across Latin America and the Caribbean, including geothermal, hydroelectric, solar and wind facilities.
The Punta Lima project represents a growing trend toward deploying long-duration battery storage resources in Puerto Rico, where regulators and policymakers have increasingly emphasized energy storage as a critical component of the island’s transition to a more resilient and renewable electric grid.
