Puerto Rico’s stalled BESS rollout just got a regulatory jolt. Here’s what it teaches about grid resilience, green technology, and making storage programmes actually work.
Most companies talk about “energy transition,” but Puerto Rico doesn’t have that luxury. After Hurricane Maria, grid failure turned from an abstract risk into a life‑or‑death reality. That’s why the island’s new push to accelerate battery energy storage systems (BESS) matters far beyond the Caribbean.
The Puerto Rico Energy Bureau (PREB) has just ordered the Puerto Rico Electric Power Authority (PREPA) to complete its long‑delayed Accelerated Battery Energy Storage Addition Programme (ASAP). On paper, this is a regulatory update. In practice, it’s a stress test for how fast a vulnerable grid can move to clean, resilient power.
Here’s the thing about this story: it isn’t just about Puerto Rico. It’s a preview of what many regions will face as they try to integrate more renewables, deal with climate‑driven extremes, and modernize infrastructure under political and financial pressure. For anyone working in green technology, grid-scale storage, or AI‑driven energy optimization, Puerto Rico is now a live case study.
This article breaks down what’s happening with Puerto Rico’s BESS rollout, why it stalled, how regulators are pushing it forward, and what operators, developers, and technology providers can learn from it.
What Puerto Rico’s ASAP BESS programme is trying to solve
Puerto Rico’s Accelerated Battery Energy Storage Addition Programme (ASAP) is designed to boost grid reliability by adding utility‑scale battery energy storage at existing generation sites run by independent power producers (IPPs).
In simple terms, ASAP does three things:
- Adds grid‑scale BESS to existing plants under current power purchase and operating agreements (PPOAs).
- Targets rapid deployment, with projects that require minimal network upgrades and can be online within about 12 months.
- Supports the island’s Integrated Resource Plan (IRP), which previously identified about 1,500MW of battery storage as a planning guideline.
Generation, transmission and distribution assets are still tied to PREPA, but day‑to‑day grid operations are handled by Luma Energy, under PREB’s oversight. That split structure means storage deployment isn’t just a technical challenge—it’s also institutional.
ASAP’s goal is blunt: reduce outages and stabilize a fragile grid using battery energy storage, while also creating space for more renewable energy. For a territory that’s heavily dependent on imported fossil fuels and exposed to hurricanes, that’s not optional—it’s survival.
Why the “accelerated” programme stalled
Despite the name, ASAP hasn’t been particularly fast.
In April 2024, Luma identified Phase 1 BESS projects that:
- Could start immediately
- Needed minimal grid upgrades
- Carried relatively low upfront costs
- Had developers claiming they could be online in under 12 months
Contracts for those projects were expected to be executed by April 2025. By August 2025, they were still stuck.
Here’s what went wrong:
- Only one developer, Ecoeléctrica, responded to PREPA’s outreach and worked on documentation.
- Three other developers—San Fermín, Horizon, and Oriana—simply didn’t respond.
- PREB publicly called the delays “extremely concerning” and demanded explanations, even warning of fines.
From a green technology perspective, the lesson is uncomfortable but important: policy alignment and technical readiness aren’t enough. You can have clear energy policy, strong business cases, and identified projects, and still fail to move if:
- Contract structures are unclear or unattractive
- Responsibilities between PREPA, Luma, IPPs, and the Financial Oversight and Management Board (FOMB) are murky
- Developers don’t feel real urgency, or see too much risk
I’ve seen this pattern in other markets as well. Grid operators and regulators think the bottleneck is “technology maturity” or “interconnection studies”. Half the time, it’s actually governance, commercial misalignment, and slow decision cycles.
PREB’s new order: pushing BESS from plan to reality
PREB’s latest resolution and order is designed to break that logjam and force the programme forward.
Key elements of PREB’s decision
PREB has:
- Approved Luma’s four final agreement terms under the ASAP programme as consistent with Puerto Rico’s Energy Public Policy and IRP.
- Directed Luma to:
- Finalise the four contracts
- Submit them to PREPA’s Governing Board for approval
- Demonstrate that process has been completed
- Required PREPA to complete the necessary review with the Financial Oversight and Management Board (FOMB) and secure its approval.
- Granted confidentiality over the final agreements due to critical infrastructure and sensitive commercial information.
This is PREB doing what strong regulators should do: removing ambiguity, declaring that the framework is aligned with policy, and then putting the responsibility squarely on the utility and operator to execute.
PREB also clarified a crucial planning issue: the 1,500MW BESS figure in the IRP is a guideline, not a hard cap. Any storage project will be evaluated on its merits—even if total capacity exceeds that number.
This matters for two reasons:
- Investors and developers now know there’s room for more storage capacity if they can justify it.
- System planners and AI‑driven grid tools can model more ambitious storage penetration scenarios without worrying about arbitrary caps.
“The approximately 1,500MW of Battery Energy Storage Resources… constitutes a guideline rather than a fixed limit,” PREB reaffirmed, reserving the right to adjust that level as needed.
Commissioner Mateo Santos did partially dissent—mainly on pass‑through cost concepts in the contracts—but agreed on the core point: Puerto Rico needs more battery storage, and the IRP number isn’t a ceiling.
What this reveals about modern, green grids
Puerto Rico’s experience highlights several broader truths about green technology and grid transformation.
1. Storage is now core infrastructure, not a pilot
PREB isn’t treating BESS as an optional add‑on. The regulator explicitly links ASAP to addressing Puerto Rico’s electricity generation shortfall and improving reliability.
For other regions, this is the direction of travel:
- BESS is being written directly into Integrated Resource Plans.
- Large‑scale systems (200MW/800MWh and above) are becoming common.
- Grid‑forming inverters and hybrid plants (solar plus storage) are standard practice in new procurements.
A modern grid built around renewables must have storage—it’s not a side project.
2. Governance can slow “accelerated” programmes more than technology
The technology stack—lithium‑ion batteries, advanced inverters, AI‑based dispatch and forecasting—can be procured and deployed relatively fast.
What took time in Puerto Rico was:
- Aligning PREPA, Luma, IPPs, PREB, and FOMB
- Finalizing contract terms and risk allocation
- Getting developers to actually complete documentation
If you’re planning a similar programme in your region or company, build governance into your risk model from day one. The slowest-moving stakeholder will set the true schedule.
3. Flexibility in planning targets is a strength, not a weakness
Some planners like hard numbers: “We will build exactly 1,500MW of storage.” PREB deliberately avoided that rigidity.
By framing 1,500MW as a planning guideline, PREB:
- Keeps leverage over future expansions
- Allows technology improvements and cost declines to influence scale
- Gives room for AI‑driven planning tools to propose more optimal storage amounts over time
As AI models for grid optimization improve, strict fixed caps can quickly become outdated. Flexible targets let regulators adapt to better data.
How AI and smart tools can make programmes like ASAP actually work
Because this article is part of our Green Technology series, it’s worth being explicit: AI can’t fix governance, but it can remove a lot of friction once stakeholders are aligned.
For programmes like ASAP, smart software and AI can add value in four practical ways.
1. Project siting and prioritization
AI models can analyze:
- Historical outage patterns
- Congestion points in the network
- Renewable curtailment data
- Fuel cost and emissions profiles of existing plants
Then rank which sites benefit most from BESS in terms of:
- Reliability gains
- Emissions reductions
- Fuel savings
- Payback period
If Puerto Rico had this kind of transparent ranking, it would be easier for regulators and the public to understand why certain BESS projects move first.
2. Contract design and risk simulation
Pass‑through cost concepts, which Commissioner Santos flagged, are notoriously hard for non‑specialists to evaluate.
AI‑assisted contract analysis tools can:
- Simulate financial outcomes for different tariff and pass‑through structures
- Stress‑test agreements under fuel price volatility, load changes, or extreme events
- Flag clauses that create misaligned incentives between utilities, IPPs, and regulators
That won’t replace human lawyers or regulators, but it can dramatically shorten review cycles and surface hidden risks earlier.
3. Real‑time dispatch and grid stability
Once BESS is deployed, AI‑driven energy management systems can:
- Forecast solar and wind generation
- Predict short‑term demand patterns
- Schedule charge/discharge to minimize costs and outages
- Support grid‑forming inverter functions for stability
On a fragile island grid, smarter dispatch isn’t a “nice to have”. It can be the difference between riding through a disturbance and cascading blackouts.
4. Transparent reporting and regulatory compliance
Regulators like PREB need proof that programmes deliver results, not just press releases.
Well‑designed digital platforms can automatically generate:
- Monthly reports on BESS availability and performance
- Peak shaving and outage mitigation statistics
- Emissions reductions tied directly to battery operation
That kind of data makes it much easier to defend future expansions of storage capacity—and gives the public a concrete view of progress.
Practical lessons for developers, utilities, and policymakers
If you’re involved in green technology, grid projects, or energy policy, Puerto Rico’s ASAP programme highlights a few practical moves that work.
For developers and IPPs:
- Treat responsiveness to regulators and utilities as a strategic asset. The one developer that kept engaging—Ecoeléctrica—stands out for the right reasons.
- Push for clarity on pass‑through costs and risk allocation early. Silence or delay rarely improves terms; it just erodes trust.
- Bring your own analytics. Showing modeled benefits (reliability, emissions, cost) makes regulators more comfortable backing your project.
For utilities and grid operators:
- Identify “no‑regrets” BESS sites that need minimal upgrades and move those first.
- Use digital workflows for interconnection, contract tracking, and documentation. Manual processes are a hidden bottleneck.
- Partner with AI or software providers that can support planning, dispatch, and reporting—don’t try to bolt that on at the end.
For regulators and policymakers:
- Do what PREB did: publicly clarify that planning numbers (like 1,500MW) are guidelines, not ceilings.
- Be explicit about enforcement. When projects stall, set clear expectations and timelines, and back them with consequences.
- Support data transparency. Even when commercial details stay confidential, publish performance metrics for the overall programme.
Why Puerto Rico’s BESS story matters for the future of green technology
Puerto Rico is a small market, but it’s a big signal. If an island grid with aging infrastructure, fiscal oversight constraints, and complex governance can scale battery energy storage, then larger systems have fewer excuses.
For the broader green technology transition, three points stand out:
- Battery storage is now central infrastructure for clean, resilient grids.
- Regulatory clarity and aligned governance are just as important as hardware specs or chemistry choices.
- AI and digital tools are the multiplier that turns policy and steel‑in‑the‑ground into reliable, efficient systems.
If your organization is planning storage projects, building AI solutions for the energy sector, or rethinking resource planning, now’s the time to treat cases like Puerto Rico not as headlines but as playbooks. The regions that master this combination of policy, technology, and intelligent control will set the pace for the next decade of clean energy.
The question isn’t whether accelerated BESS programmes are possible—they are. The real question is: who will learn fast enough to make them work before the next climate shock hits?