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Puerto Rico on its way to growing ‘1st virtual power plant in the Caribbean’

The Solar Energy Storage Association of Puerto Rico is holding the eighth edition of its summit to discuss renewable energy solutions for the island.

Puerto Rico is progressing in its reliance on alternative energy sources as more homes and businesses adopt these systems, with consumers “finding solar energy to be an affordable option to ensure the energy supply in their homes,” said Javier Rúa-Jovet, director of public policy for the Solar Energy Storage Association of Puerto Rico (SESA).

This week, the trade group is holding the eighth edition of its SESA Summit, bringing together more than 50 local and national experts to discuss industry-related topics and the importance of expanding efforts to increase solar energy and storage in Puerto Rico, aligning with the goals of the transition to renewable energy established by local public policy.

“It is important to continue informing and educating about the fundamental role of solar energy and storage,” Rúa-Jovet said.

“This event provides an opportunity for all components of the energy segment to stay updated on a topic that is becoming more and more important both individually and collectively. We also want the general community to know there are jobs in the energy sector, and to come to the job fair,” he added.

During the event, Rúa-Jovet credited Gov. Pedro Pierluisi, who delivered Tuesday’s keynote speech, saying that under his watch, “Puerto Rico has the first virtual power plant [VPP] in Latin America and the Caribbean, and potentially the largest one in the world.”

“We have some 7,000 homes now enrolled in the VPP, and the demand on discharge is around 35 to 40 megawatts. But that’s just the pilot stage. We need to keep growing this, and Puerto Rico is installing at least 4,000 batteries a month that can be rolled into this VPP,” Rúa-Jovet said.

“There are likely more than 140,000 batteries already installed that could [contribute to this system]. We’re talking about an 800-megawatt clean peaker plant that grows organically every month,” he added.  

In his address, Pierluisi highlighted significant progress since 2021, including an increase in grid-connected solar systems from slightly more than 21,000 to more than 130,000.

These numbers reflect multiple government initiatives supported by nearly $2 billion in federal funding, including programs for energy support, community resilience and agroenergy stability. These initiatives benefit small businesses, single-family homes and farmers, helping them transition to renewable sources.

“Electricity is essential for our people and our business sector, and its stability is vital for the economic development of Puerto Rico. Over the past four years, transforming our electrical system and promoting the generation and distribution of cleaner, more efficient and accessible energy has been one of the most important priorities of my administration,” said Pierluisi.

The governor also noted progress on industrial-scale energy projects, including contracts for approximately 1,000 megawatts of renewable generation, several projects under construction and nearly 1,000 megawatts of energy storage systems. He highlighted the $1.4 billion investment in the ER2 program to develop high-impact microgrids serving hospitals, communities and industries.  

He emphasized collaboration between the government and private sector to achieve the goal of generating 100% of Puerto Rico’s energy from renewable sources.

“We have faced challenges in this process, but we have made significant progress. I am very optimistic about the future of clean energy in Puerto Rico and about our ability to transform our energy system for the benefit of our people and our planet,” Pierluisi said. 

USDA Rural Development OKs $1.1M in funding
During the summit, the U.S. Department of Agriculture Rural Development’s state director for Puerto Rico, Maximiliano Trujillo, confirmed an additional $1.1 million in funding through the agency’s Rural Energy for America Program (REAP) for six local projects involving the purchase and installation of renewable energy systems:

  1. HUB Group LLC in Moca: $26,681
  2. Eiramyl Salon & SPA LLC in Hatillo: $29,759
  3. Pajonal Dairy Inc. in Florida: $21,586
  4. Quality Assisted Care LLC in Manatí: $32,320
  5. Empresas Barreto LLC in Trujillo Alto: $1 million
  6. Advance Digital Image Corp. in San Sebastián: $36,083

This round of funding increases public-private investment to more than $2.5 million, Trujillo said.

“REAP is much more than a program that funds solar panels and batteries. It can be used for energy systems that may include eligible microgrids and funding for power co-ops, which could use the energy for their own operations or create microgrids to sell energy to members and other entities,” Trujillo said.

Author Details
Author Details
Business reporter with 30 years of experience writing for weekly and daily newspapers, as well as trade publications in Puerto Rico. My list of former employers includes Caribbean Business, The San Juan Star, and the Puerto Rico Daily Sun, among others. My areas of expertise include telecommunications, technology, retail, agriculture, tourism, banking and most other segments of Puerto Rico’s economy.
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