Polaris submits battery storage agreement to Puerto Rico regulator

Published 11/08/2025, 12:56
Polaris submits battery storage agreement to Puerto Rico regulator

TORONTO - Polaris (NYSE:PII) Renewable Energy Inc. (TSX:PIF) announced Monday that LUMA Energy ServCo has submitted the Battery Energy Storage System Standard Offer Agreement to the Puerto Rico Energy Bureau for regulatory approval.

The agreement, submitted on August 8, is expected to receive final approval within 30 to 90 days. Under the arrangement, Polaris Power US, a wholly owned subsidiary of Polaris, will install and operate a battery energy storage system at the company’s existing Punta Lima site in Puerto Rico.

The submission is part of Puerto Rico’s Accelerated Storage Addition Program, which aims to strengthen grid reliability across the island through utility-scale battery storage systems co-located with existing generation facilities.

The proposed battery system has a capacity of 71.4 MW (35.7 MW x 2), with the company exploring the possibility of expanding to 80 MW (40 MW x 2). Commercial operation is forecast to begin in the third quarter of 2026, with the agreement running for 20 years from that date.

Once operational, Polaris will receive monthly fixed and performance-based payments from the Puerto Rico Electric Power Authority in exchange for providing energy storage services, including capacity and grid support.

"The submission of the SO1 Agreement represents a significant milestone in advancing our energy storage strategy in Puerto Rico," said Marc Murnaghan, CEO of Polaris, according to the press release.

Polaris Renewable Energy’s current portfolio includes a geothermal plant, four hydroelectric plants, three solar projects, and an onshore wind park across Latin America and the Caribbean.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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