Genera, Tesla sign contract for 430 MW in energy storage systems
The federally funded project involves a $767 million investment.
Puerto Rico Gov. Jenniffer González-Colón announced the signing of a contract between Genera PR and Tesla for the acquisition of 430 megawatts (MW) in Tesla Megapack systems, a project aimed at improving the reliability and resilience of the island’s electrical grid.
The $767 million project, which is fully funded by federal resources, was described as “a significant step toward the stabilization, modernization and resilience of Puerto Rico’s electrical system.” Tesla was selected on Oct. 3, following an auction process involving 130 companies. Brad Harbidge, Tesla’s director of Megapack Americas, and Winnie Irizarry, CEO of Genera PR, signed the contract on Feb. 7.
“We’re addressing the energy crisis, taking concrete actions to stabilize the system and ensure reliable, modern and accessible electrical service for all,” González-Colón said.
She emphasized that the project will not increase emissions, aligning with Puerto Rico’s energy policy to diversify sources, reduce fossil fuel dependence and improve the island’s investment environment by minimizing disruptions in electricity supply.
Irizarry noted the project’s potential: “This project not only modernizes our generation system using cutting-edge technology, but it will also strengthen the stability and reliability of the island’s electrical system.” She credited support from the Federal Emergency Management Agency, the Department of Housing, the Puerto Rico Central Office of Recovery, Reconstruction and Resiliency (COR3), the Financial Oversight and Management Board, the Puerto Rico Electric Power Authority, and the Public-Private Partnerships Authority.
The new energy storage systems will integrate 430 MW of “clean, dispatchable energy instantly for up to four hours, leading to an anticipated 90% reduction in load-shedding events” Irizarry said.
The capacity is equivalent to the island’s largest power plant currently in operation, improving energy stability for residents once installations are completed, Irizarry added.
The project includes installing Tesla Megapacks at six power plants: Cambalache (Arecibo), Vega Baja, Palo Seco (Toa Baja), Yabucoa, Aguirre (Salinas), and Costa Sur. The first units are expected to arrive at Cambalache in July, with operations beginning by the end of the year. Full system deployment is expected by the first quarter of 2027.
“The signing of this agreement with Tesla marks a groundbreaking change in Puerto Rico’s energy transformation. This unprecedented investment in our energy infrastructure is a firm step towards a sustainable future,” Irizarry said.
Josué Colón, Puerto Rico’s energy czar, confirmed this as the largest battery project currently under development in the U.S., according to Tesla.
“There is no doubt that this is another important step forward in the reconstruction of the electrical infrastructure on the island. When completed, this new energy platform will dramatically reduce the frequency and duration of service interruptions that currently affect us when any of the generating units fail,” Colón said.
“Additionally, these industrial-scale battery systems will help maintain the frequency and voltages of the electrical system within proper operational parameters, resulting in better quality energy service for our people,” Colón added.
Genera PR confirmed the project will not impact consumer bills.
