The Puerto Rico Electric Power Authority (PREPA) plans to launch a bidding campaign for renewable energy and energy storage systems, and an application has been submitted.

　　(After the hurricane in 2017, Tesla Corporation donated solar power generation facilities and battery energy storage systems to public medical institutions in Puerto Rico)

　　This is the second bidding activity after the Puerto Rico Electricity Authority launched the first bidding activity in February this year. In the first bidding activity, the bureau plans to purchase and deploy 1GW of renewable energy power generation facilities and 500MW/2,000MWh energy storage systems. The second tender will purchase and deploy 500MW of renewable energy power generation facilities and 250MW/1,000MWh energy storage systems.

　　According to its integrated resource plan (IRP), the Puerto Rico Electricity Authority (PREPA) plans to conduct a total of six purchases within three years, seeking to purchase and deploy a total of 3,750MW of renewable energy power generation facilities and 1,500MW of energy storage systems. The Puerto Rico Energy Agency will consider approving its second batch of tender plans.

　　The Puerto Rico Electricity Authority will sign contracts with renewable energy project developers through the Power Purchase and Operation Agreement (PPOA) and energy storage developers through the Energy Storage Service Agreement (ESSA). For co-located renewable energy power generation facilities and energy storage systems, contracts will be signed separately.

　　In addition, utility-scale energy facilities that do not include virtual power plants (VPP) must have installed capacity of 20MW or more, and will consider signing contracts for up to 25 years. The installed capacity of the virtual power plant (VPP) needs to reach more than 5MW, and these projects must be put into operation within 24 months after the contract is signed.

　　Like solar power generation facilities and energy storage systems deployed in other regions of the United States, the investment tax credit (ITC) will apply to solar power generation facilities and the energy storage systems deployed with them.

　　The Puerto Rico Electricity Authority pointed out that even before Hurricane Irma and Maria caused damage to the island and its power grid in 2017, Puerto Rico’s energy infrastructure was already unable to meet electricity demand.

　　The company stated that island-based isolated power systems face major challenges in terms of system stability and reliability. Puerto Rico’s power system is sensitive to load changes and frequency fluctuations. Within a few seconds, these changes and fluctuations may trigger low-frequency load shedding events, so battery energy storage systems need to be deployed to stabilize operations.

　　It is reported that the tender plan of the Puerto Rico Power Authority will be released at the end of this month.

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