Puerto Rico’s stalled battery storage push is finally moving. Here’s what ASAP means for resilient green grids, storage markets, and AI-driven energy systems.
Puerto Rico’s battery storage push is finally moving
Puerto Rico’s regulator just sent a clear message: finish the battery rollout, no more excuses.
The Puerto Rico Energy Bureau (PREB) has ordered the Puerto Rico Electric Power Authority (PREPA) to complete its Accelerated Battery Energy Storage Addition Programme (ASAP), forcing stalled contracts with independent power producers (IPPs) over the line and clarifying that the island’s 1,500MW storage “target” is a guideline, not a ceiling.
This matters because Puerto Rico is a test bed for what a climate-resilient, renewables-heavy grid actually looks like. If it can make large-scale battery energy storage systems (BESS) work on a fragile island grid hit by hurricanes, blackouts and aging infrastructure, the playbook that emerges won’t just be useful for the Caribbean. It’ll shape how utilities and regulators across the Americas approach green technology and grid modernization.
In this post, I’ll walk through what’s happening with ASAP, why the delays really occurred, and how this ties into the broader green technology trend toward AI-optimized, storage-rich power systems. Then I’ll get practical: what developers, utilities, investors and tech providers should take away from Puerto Rico’s experience.
What the ASAP battery programme is trying to do
ASAP is straightforward in concept: add utility‑scale batteries at existing generation sites, fast, by using IPPs that already have power purchase and operating agreements (PPOAs) with PREPA.
At a high level, the programme aims to:
- Boost grid reliability by adding BESS where it can respond quickly to outages and variability
- Support higher renewable penetration without destabilizing frequency or voltage
- Use existing sites and contracts to avoid years of permitting and grid upgrade delays
Under ASAP:
- IPPs with existing PPOAs bolt on BESS at their plants
- Luma Energy, which operates transmission and distribution, coordinates interconnection and grid needs
- PREB oversees policy alignment with Puerto Rico’s Energy Public Policy and the Integrated Resource Plan (IRP)
PREB has now confirmed that Luma’s four final ASAP agreement templates comply with policy and the IRP, and has instructed PREPA to finish approvals with the Financial Oversight and Management Board (FOMB). In other words: the regulatory pathway is green-lit. The holdup is no longer about rules; it’s about execution.
For the wider green technology story, ASAP is a textbook example of using storage as infrastructure, not as a niche project. Instead of one big showcase plant, it embeds batteries directly into the generation fleet.
Why ASAP stalled – and what that reveals about storage projects
The reality: most companies underestimate how hard it is to move from policy approval to shovels in the ground.
Here’s what happened in Puerto Rico:
- By early 2024, PREB had indicated that Luma’s plan to contract BESS from IPPs was consistent with public policy.
- In April 2024, Luma identified Phase 1 projects that could start quickly, with minimal cost and no network upgrades. Some developers said they could be online in under 12 months.
- Contracts were expected to be executed by April 2025.
- By August 2025, almost nothing had progressed. Only Ecoeléctrica responded to PREPA’s communications and worked on documentation. Three other players—San Fermín, Horizon and Oriana—didn’t respond at all.
PREB called the delays “extremely concerning” and linked them directly to Puerto Rico’s generation shortfall. The regulator even threatened fines for non‑responsive developers.
What does that tell us about large BESS deployments?
-
Contract standardization isn’t optional
Where Polaris Renewable Energy submitted a BESS standard offer (SO1) agreement under ASAP, it effectively signaled: "We know the rules, here’s how we’ll comply." That’s a huge contrast with developers that stayed silent. -
Developer responsiveness is a grid‑level risk
From PREB’s perspective, a non‑responsive IPP isn’t just annoying, it’s a threat to island reliability. That’s why the language around fines came out. -
Public policy alignment must translate to project bankability
One commissioner, Mateo Santos, agreed with integrating battery resources but dissented on “pass‑through” concepts in the contracts. That’s a reminder: even when the technology case is solid, contract risk allocation can slow everything down.
If you’re working in green technology—whether you’re an IPP, storage OEM, or AI grid software provider—this is the pattern to watch: approvals arrive, targets look ambitious, and then projects stall in the gap between policy design and commercial reality.
PREB’s new order: more storage, fewer excuses
PREB’s latest resolution and order is designed to close that gap.
The regulator has:
- Approved the four final ASAP agreement drafts prepared by Luma
- Directed Luma to finalize contracts with IPPs and submit them to PREPA’s Governing Board
- Required PREPA to obtain sign‑off from the FOMB
- Confirmed Luma’s confidentiality request for the agreements (given critical infrastructure and personal data)
- Clarified that the 1,500MW of BESS in the IRP is a guideline, not a hard cap
That last point is crucial. PREB is saying:
“Battery projects will be evaluated on their merits, even if total capacity exceeds 1,500MW. The Bureau reserves the right to adjust that level.”
For energy storage markets, that’s a big signal:
- It decouples planning targets from deployment ceilings. Targets are planning tools, not hard stops.
- It gives developers confidence that strong projects won’t be rejected just because an arbitrary megawatt number was hit.
- It supports a future where BESS becomes a core reliability asset, especially as thermal plants retire and more solar and wind connect.
There’s still tension. Commissioner Santos reiterated objections to certain cost pass‑through clauses, reflecting a broader debate: how much price and risk volatility should be shifted onto ratepayers vs. developers? The direction of travel, though, is clear—battery integration is not up for debate; contract mechanics are.
Why Puerto Rico’s batteries matter for green technology
Here’s the thing about Puerto Rico: it’s a stress test for climate resilience and green technology under real pressure.
The island combines:
- High exposure to hurricanes and extreme weather
- A legacy grid still recovering from major storm damage
- Ambitious renewable energy targets and a fragile customer base that can’t afford long outages
In that context, battery energy storage isn’t a luxury add‑on. It’s how you:
- Stabilize a grid that’s increasingly powered by variable renewables
- Keep the lights on during transmission faults or generator trips
- Avoid excessive curtailment of solar during off‑peak hours
Where AI fits into this picture
As part of our broader Green Technology series, the key connection is between BESS and AI‑driven grid management.
Large‑scale storage projects like ASAP create a more flexible grid—but also a more complex one. You now have hundreds of megawatts that can:
- Charge when prices or emissions are low
- Discharge into peak demand or contingency events
- Provide frequency regulation, inertia‑like services, and black‑start support
AI and advanced optimization software are the tools that:
- Forecast demand, solar and wind output, and failure risk across the system
- Optimize battery dispatch to reduce costs and emissions
- Simulate contingencies (e.g., “What if a hurricane knocks out this corridor?”) and pre‑position storage assets
The future Puerto Rico is pushing toward looks like this:
- Distributed solar and utility‑scale renewables across the island
- Utility‑scale BESS at key generation and grid nodes
- AI‑based energy management systems orchestrating these assets in real time
If you’re building products in green technology—forecasting software, optimization engines, cyber‑physical security for storage, or hardware that’s easier to integrate—this is the environment you should design for.
Practical lessons for developers, utilities and policymakers
Puerto Rico’s ASAP programme is messy, but it’s instructive. Here are the concrete lessons I’d pull from it.
For developers and IPPs
1. Treat standard contracts as strategic assets
Polaris’ move to file a standard offer (SO1) BESS agreement made it stand out from peers that hadn’t delivered. Developers that show up with:
- Pre‑reviewed contract templates aligned to IRPs and public policy
- Clear cost and risk structures
- Transparent pass‑through logic
are more likely to get regulator confidence and move ahead when others stall.
2. Responsiveness is non‑negotiable
When PREPA emails and the regulator is watching, silence is a red flag. If your team can’t keep pace with documentation, approvals and clarifications, you’re signaling operational risk. That directly affects:
- Project selection
- Financing terms
- Long‑term reputation in constrained markets
For utilities, grid operators and public agencies
3. Use clear capacity targets as guidelines, not brick walls
PREB’s stance on the 1,500MW “cap” is smart. You need numbers to plan transmission and resource adequacy, but rigid caps kill high‑value projects that come later. A better approach:
- Publish indicative storage needs by region and timeframe
- Clarify that these are planning baselines subject to revision
- Periodically update based on actual deployment, performance and system modeling
4. Align policy, regulation and commercial terms early
PUCs and energy bureaus shouldn’t just approve IRPs and walk away. What Puerto Rico is highlighting:
- Contract structure, risk allocation and pass‑through principles should be debated before you issue RFPs at scale.
- Clarity up front reduces delays, re‑negotiation and dissent later.
For investors and technology providers
5. Storage markets will reward patience and local fluency
If you’re backing or supplying BESS projects:
- Expect regulatory back‑and‑forth on cost recovery and contracts
- Focus on markets where regulators are explicit about storage’s role in reliability
- Invest in local legal, regulatory and community expertise—it’s not a “plug and play” asset class
6. Design products for regulatory transparency
AI tools, optimization platforms and even battery hardware need to surface:
- Clear performance metrics
- Operational logs suitable for regulatory review
- Easy‑to‑audit pricing and settlement logic
The more transparent your solution, the easier it is for regulators like PREB to approve projects that rely on it.
Where Puerto Rico goes from here – and why you should care
PREB’s order doesn’t magically build batteries. But it does remove the main excuses.
We now have:
- Confirmed alignment of ASAP contracts with public policy and the IRP
- A path to FOMB approval for the remaining agreements
- Explicit flexibility to go beyond 1,500MW of battery storage when the system needs it
The next 12–24 months will show whether Puerto Rico becomes a model for resilient, storage‑rich grids or a warning about how regulatory clarity still isn’t enough without competent delivery.
For anyone working in green technology, there’s a bigger message:
- Storage is moving from pilot status to backbone infrastructure.
- AI‑enabled control will decide whether that infrastructure delivers full value.
- Regulatory frameworks are catching up—but they expect maturity from market participants.
If your business touches energy, climate resilience or smart infrastructure, treat Puerto Rico’s ASAP programme as an early look at the grid your own region is heading toward. The question isn’t whether large‑scale BESS and intelligent control will arrive. They already have. The question is whether you’ll be ready to operate—and win—in that environment.