Puerto Rico introduces mandate for energy storage in new renewable projects

Facebook
Twitter
LinkedIn
Reddit
Email

Government-owned Puerto Rican electric power company Autoridad de Energia Electrica (AEE) has made it mandatory for developers of renewable energy projects to incorporate energy storage into new installations.

The new Minimum Technical Requirement (MTR) regulations have been introduced with the aim of minimising the impact of adding extra renewable energy capacity to the grid and reducing the level of infrastructure investment required to accommodate it.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Under new regulations, operators of renewable energy projects will be required to add 30% of the installation’s rated capacity in storage to aid frequency control, as well as the flexibility to keep 45% of the project’s capacity in reserve for at least one minute for ramping control to compensate for fluctuations in generated power from variable sources.

According to AEE executive director John F Alicea Flores, the company, which has a national monopoly on electricity generation, transmission and distribution through the grid and serves as regulator, recently completed a series of evaluations to find a realistic level of compliance that developers could meet.

In order to lower electricity prices for ratepayers and to make it easier to add new sources of electricity generated by renewable projects including PV, the Caribbean island territory’s government announced in October that it would begin renegotiating power purchase agreements (PPA) with project developers. According to Flores, negotiations are ongoing and AEE hopes to find “fair prices for all parties”. If negotiations are successful as expected, AEE will agree to purchase electricity from a number of renewable projects. Project proposals have been submitted from 64 developers, of which 15 are in the process of negotiating PPAs under the new MTR standards, according to local news sources.

In January 2014, the government of Puerto Rico will launch a new drive to procure 600MW of renewable energy capacity with the aim of adding that amount by the end of next year. This would represent an increase of 5% of energy generated from renewables in the Puerto Rican national energy mix, from 1% at present, to 6%.

Additionally, Puerto Rican authorities have also announced that proposed renewable energy projects on ‘sensitive’ or agricultural lands will be rejected.

To date, although energy storage has been recognised as a possible solution to providing adequate frequency control and ramping control to electricity transmission and distribution infrastructures, only authorities in California, via a storage requirement for utilities, Germany, via a subsidy on storage systems payable to residential users and Japan, through experiments in large-scale battery storage, have introduced policy measures aimed at adding energy storage to networks.

Read Next

August 4, 2026
T1 Energy has signed a module supply deal with Clearway Energy. The modules will use domestically-produced cells from T1’s Austin facility.
August 4, 2026
Solar growth changes how operators think about inspections, as they must ensure that thousands of panels are producing at peak efficiency.
August 4, 2026
New Zealand has published the final report of its review into the residential and small-to-medium-scale solar installation process.
August 4, 2026
Australia's CEFC has committed AU$100 million (US$65.8 million) to a new programme targeting mid-scale hybrid solar-plus-storage projects.
August 3, 2026
India’s electricity regulator, CERC, has proposed restoring interstate transmission charge waivers for delayed renewable energy projects.
Premium
August 3, 2026
India approves US$531.7 million Pradhan Mantri Surya Sarovar Yojana (PMSSY) scheme for 5GW floating solar PV with co-located BESS deployment.

Upcoming Events

Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
April 20, 2027
Istanbul, Türkiye