PREB launches RFP for next round of Tranche 2 green energy projects

Utility-scale resources offered in response to the request for proposals on a stand-alone basis must have generating capacity of at least 10 megawatts. Proponents may propose supply durations of between 20 and 25 years.

By The Star Staff

The Puerto Rico Energy Bureau (PREB), through an independent contractor (IC), has launched requests for proposals (RFP) for another round of Tranche 2 projects.

For the current RFP, which is for the second of six different proposed tranches, the Puerto Rico Electric Power Authority (PREPA) will procure at least 1,000 megawatts (MW) of renewable energy resource capacity and at least 500 MW (2,000 MW-hours) of energy storage resource capacity with an effective duration of two to four hours.

According to Accion Group, the independent contractor hired to oversee the renewable energy bids, the deadline to submit the RFP is Nov. 18.

The PREB-IC will accept proposals for all, or a portion, of such capacity, according to the documents. Utility-scale resources offered in response to the RFP on a stand-alone basis must have generating capacity of at least 10 MW. Proponents may propose supply durations of between 20 and 25 years. They may propose either new or existing energy resources, provided that any existing energy resource so proposed may not be covered by an existing contract, net metering arrangement or other contract with PREPA.

Energy storage resources must provide discharge energy during PREPA’s evening peak periods, which normally extend from 4 p.m. through 10 p.m. but may also provide ancillary service capability such as frequency response, regulating capacity or operating reserves, the document says.

Each proponent can submit more than one proposal on a standalone basis pending certain conditions, the documents say.

The price submission in each proposal to develop and construct an energy resource must cover all the proponent’s costs to design, develop and connect to the transmission and distribution (T&D) system. The proposals must also identify all property and local taxes and tax abatements related to its proposed project, and contract prices will cover all such taxes.

Proponents of virtual power plants must also meet certain requirements, including the way the proponent would coordinate and dispatch resources; the nature of the assets, including software and server and the plans for monitoring performance, and interconnection with the T&D system.

The latest RFP is part of government requirements for PREPA to draw energy entirely from renewable sources by 2050.