Genera PR, the company operating the majority of Puerto Rico’s energy generation resources, has begun construction on a 52MW battery energy storage system (BESS) at the Cambalache Power Plant in Arecibo.
The project has an investment of US$109.5 million in federal funding and will commence with demolition and site preparation, followed by the installation of 68 Tesla Megapacks in Spring 2026.
The BESS is expected to begin operations in late 2026.
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The deal was finalised in February of this year and will see Tesla providing the agreed-upon capacity across six power plant locations.
In addition to Cambalache, this includes Vega Baja, Palo Seco, Yabucoa, Aguirre, and Costa Sur. The entire system is expected to be operational in 2027.
The Yabucoa municipality is also home to system integrator FlexGen, IPP Arclight, and its subsidiary Infigen Renewables’ PV co-located 15MW BESS.
The total investment into the Tesla project is expected to reach US$767 million, including the purchase price of the Megapacks, construction, and labour.
Iván Báez, Vice President of Public and Government Affairs at Genera PR, stated that the batteries will enable the company to “respond more efficiently to demand fluctuations, reduce our dependence on fossil fuels, and support the integration of new generation technologies.”
Based on reports to the Puerto Rico Energy Bureau, the electrical system had more than 100 load-shed events in 2024. These events occur when electricity demand surpasses supply, prompting providers to shut off lower-priority loads to protect priority systems, often caused by insufficient or sudden generation failures.
In August, Luma Energy, the US-Canadian joint venture (JV) managing Puerto Rico’s electricity distribution, announced plans to develop nine energy interconnection points with Linxon US LLC and their partner AtkinsRéalis Caribe, aimed at integrating renewable energy projects.
Adding BESS and generation assets has been a continuing issue in Puerto Rico.
Luma has faced scrutiny for its slow modernisation of the island’s energy infrastructure, and a decline in electrical service taking place after the company took over in 2021. In the same year, Luma had to testify before the US House of Representatives Natural Resources Committee about its infrastructure upgrade efforts.
Several developers have also failed to deliver BESS projects under the Puerto Rico Accelerated Storage Addition Programme, which seeks to improve grid reliability throughout the island by integrating utility-scale BESS with existing generation facilities.
In August, Polaris Renewable Energy submitted a BESS standard offer (SO1) agreement on behalf of the Puerto Rico Electric Power Authority (PREPA) to the Puerto Rico Energy Bureau (PREB).
The SO1 agreement is part of the ASAP scheme. At the time of submission, Polaris seemed to set itself apart from the developers who had failed to deliver BESS projects on the island.
Although not yet finished, the projects from Genera PR, working with Tesla, and Polaris, may be able to help strengthen Puerto Rico’s electric grid.
