Puerto Rico launches RFQ for new 600 MW Costa Sur power plant

By THE STAR STAFF

Puerto Rico’s Public-Private Partnerships Authority (P3A) has released a request for qualifications (RFQ) for the development of the 600-megawatt (MW) Costa Sur power generation project.

Key dates for the Costa Sur RFQ are as follows: the deadline to submit requests for clarification (RFCs) is March 6, with responses to RFCs issued on March 12. Statements of qualifications and project descriptions are due by March 17. Qualified respondents are expected to be notified by March 24, according to the RFQ published on Tuesday.

The Costa Sur site, located in Guayanilla on the island’s southern coast, currently houses natural gas units Costa Sur 5 and Costa Sur 6, originally installed in the early 1970s and designed to operate on oil. The new project aims to replace these units with dual-fuel generation technology capable of running on both natural gas and ultra-low-sulfur diesel.

According to the RFQ, the project will modernize or replace existing infrastructure, creating a new firm-generation facility with individual units of some 150 to 200 MW each, with a maximum total capacity of 600 MW. The upgrade will help meet Puerto Rico’s ongoing energy demand and strengthen grid resilience.

The selected developer will enter into a long-term power purchase agreement with the Puerto Rico Electric Power Authority, ensuring a stable power supply and investment security.

The P3A is also underway with a process to procure 3,000 MW of new capacity.

The Costa Sur New Generation Facility Procurement Process, as a dedicated initiative to procure firm generation capacity for the Costa Sur Power Plant complex, was separated from other procurements to address specific interest from potential developers.

The P3A stated that by separating Costa Sur into its own procurement process, it can more efficiently and effectively evaluate proposals for this key energy site, while the original procurement continues for the remaining capacity needs. The combined total capacity from both processes will not exceed 3,000 MW.

The new power plant must offer fast start and rapid ramp-down capabilities, utilizing advanced gas turbine technology. Coal-fired and nuclear generation are prohibited under current regulations.

As previously reported by the STAR, In the separate 3,000 MW capacity procurement launched in October 2025, Polaris Renewable Energy has confirmed its participation as a bidder. CEO Marc Murnaghan announced during the company’s recent fourth-quarter earnings call that Polaris successfully passed the initial RFQ stage.