Regulator orders PREPA, energy developers to explain battery installation delays

According to PREPA, in a motion filed in August, only Ecoeléctrica responded to PREPA’s update request.

By THE STAR STAFF

The Puerto Rico Energy Bureau (PREB) of the Public Service Regulatory Board has issued an order to show cause against the Puerto Rico Electric Power Authority (PREPA) and three energy firms for failing to comply with the initial phase of battery system installations for solar energy storage.

In its proposal for the Accelerated Storage Addition Program submitted to the Energy Bureau on April 26, 2024, LUMA emphasized that Phase 1 projects could begin immediately since they did not require network upgrades and had minimal interconnection costs. Some independent power producers (IPPs) claimed they could be operational in less than 12 months, and implementation was planned for April 2025, the PREB said in an order issued September 19.

Despite the approvals and extensions granted, the document states that none of the agreements have been executed. In addition to PREPA, the Accelerated Storage Addition Program (ASAP) also involves the companies Ecoeléctrica, San Fermín Battery Project LLC, Infinigen Horizon ASAP LLC, and Infinigen Oriana ASAP LLC.

According to PREPA, in a motion filed in August, only Ecoeléctrica responded to PREPA’s update request, indicating it is working on completing the required documentation and expects to be ready to execute the contract by September 2025. However, the San Fermín Battery Project LLC, Infinigen Horizon ASAP LLC, and Infinigen Oriana ASAP LLC have not responded to PREPA’s communications nor submitted the required documentation, despite PREPA’s initial email sent on June 27, 2025, and a follow-up on July 24, 2025.

The Bureau warned that the failure to comply with the deadlines established in the ASAP Program—under which the projects could have started immediately without requiring significant grid improvements or incurring high interconnection costs—is concerning.

The PREB ordered both PREPA and the developers to provide justifications for the delays and to explain why they should not face penalties. The Energy Bureau has specified that PREPA and the developers (Ecoeléctrica, San Fermín, Oriana, and Horizon) must show cause by this week as to why the Energy Bureau should not impose an administrative fine of $10,000 for failing to execute the Phase 1 agreements.

PREPA’s response must detail all reasons that have prevented the execution of the contracts, include the status of developer compliance with the Signing Conditions, and explain why the Energy Bureau should not impose fines under these circumstances. Additionally, the developers (Ecoeléctrica, San Fermín, Oriana, and Horizon) must submit separate responses that clarify their current compliance status with the Signing Conditions, identify any obstacles that have prevented the execution of the agreements, and state why the Energy Bureau should not impose fines in this situation.