Distributed Energy Resources

Puerto Rico Electric Power Authority RFP seeks renewable energy, storage resources

The Puerto Rico Electric Power Authority (PREPA) is looking to procure at least 1,000 megawatts of renewable energy resource capacity and at least 500 MW of energy storage resource capacity with an effective duration of four hours under a request for proposals (RFP) PREPA has issued.

Background

The Puerto Rico Energy Bureau issued a final resolution and order on PREPA’s integrated resource plan (IRP) on August 24, 2020 in which it approved a modified preferred resource plan and a modified action plan, which PREPA will follow over the next five years for the procurement of new energy resources and the retirement of many of its fossil-fueled generating units.

In addition, on December 8, 2020, the Energy Bureau issued an order in which it directed PREPA to use every effort to comply with the IRP, modified preferred resource plan and modified action plan approved in the August 24, 2020 decision and to achieve a 40% renewable energy generation target for 2025.

The Energy Bureau also ordered PREPA to implement a procurement plan and develop a RFP in accordance with the Dec. 8, 2020 order.

A RFP issued by PREPA on Feb. 22, 2021 represents the first of six tranches of RFPs, which PREPA intends to issue in accordance with the IRP, the August 24, 2020 decision and the December 8, 2020 Energy Bureau order, which requires the procurement by PREPA of a cumulative total of 3,750 MW of renewable energy resources and 1,500 MW of energy storage resources during a three-year period.

Details on RFP

In the RFP, PREPA said it wants to procure at least 1,000 MW of renewable energy resource capacity and at least 500 MW (2,000 MWh) of energy storage resource capacity with an effective duration of four  hours, including at least 150 MW of distributed energy storage virtual power plants (VPPs), as well as all of their associated environmental credits from renewable energy resources.

“PREPA will accept proposals for all, or a portion, of such capacity. Renewable energy resources offered in response to this RFP on a stand-alone basis (i.e., other than those aggregated into a VPP) must have generating capacity of at least 20 MW,” the RFP said.

Respondents may propose supply durations of up to 25 years and they can propose either new or existing energy resources, provided that any existing energy resource so proposed may not be covered by an existing power purchase and operating agreement, net metering arrangement or other contract with PREPA.

PREPA said that while it will give a preference to energy storage resources with four-hour discharge durations, it will also consider two hour and six-hour discharge durations.

Energy storage resources “shall provide delivered energy during PREPA’s evening peak periods but may also provide ancillary service capability such as frequency response, regulating capacity or operating reserves,” the RFP said.

Responses are due by May 3 and the RFP is available here.