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On Tuesday, Governor Pedro Pierluisi Urrutia declared that his administration is progressing towards the design, construction, and operation of a 300-megawatt natural gas facility, emphasizing that the initiative is well in motion.
An announcement is anticipated soon regarding the identity of the chosen entity to execute the project.
“Puerto Rico requires additional generation,” the governor stated. “The Energy Bureau has already given the green light for a 300-megawatt natural gas plant. That is definitely on the way, and the relevant announcement will follow at the appropriate time.”
Addressing the investigation he initiated following the blackouts in June, Pierluisi noted that both the Public-Private Partnerships Authority (P3A) and the Puerto Rico Electric Power Authority (PREPA) have engaged an independent organization to conduct the investigation, and he is aware that it is nearing completion.
The Federal Emergency Management Agency has allocated over $11 billion for the reconstruction of Puerto Rico’s vulnerable and outdated electrical grid, although under $1 billion is designated for generation purposes.
Last year, the P3A released a solicitation seeking proposals from bidders interested in designing, constructing, operating, and maintaining a natural gas plant, which could also be adapted to utilize alternative fuels such as hydrogen. This request was issued under an amendment authorized by the Puerto Rico Energy Bureau in the Integrated Resources Plan in 2022.
“In any case, achieving that goal, we ideally need a base load generation that provides the necessary protection and redundancy for our system,” the governor expressed last year. “While pursuing that objective, we must adhere to the stipulations set by the Environmental Protection Agency (EPA). We understand that, unless the EPA grants some kind of exemption, the existing plants in Puerto Rico that burn oil cannot meet those requirements. Plants that primarily burn diesel can generally meet those emission standards, as can those utilizing natural gas.”
“It is completely logical to establish an additional plant that operates on natural gas,” Pierluisi continued. “What the government is currently doing is simply fulfilling the directives that the Energy Bureau has already established.”
The RFQ released by the P3A stipulates that neither Genera PR, which is transitioning to manage PREPA’s legacy power plants, nor LUMA Energy, the private operator overseeing the PREPA transmission and distribution network, are eligible to submit bids.
