Puerto Rico to Bolster Energy Grid with $758 Million Tesla Megapack Installation
Puerto Rico is undertaking a important energy infrastructure project involving the installation of Tesla Megapack battery storage systems at six power plants across the island. The initiative, representing a total federal investment of $758 million, aims to enhance grid stability, reduce reliance on costly and polluting diesel generation, and considerably decrease the frequency of service interruptions known as “load shedding.”
The project began in October 2025 with the installation of a 52 megawatt system at the Cambalache plant. Similar projects are planned for vega Baja (49 megawatts), Palo Seco in Toa Baja (95 megawatts), Yabucoa in Humacao (40 megawatts), Aguirre in Salinas (164 megawatts), and Costa Sur in Guayanilla (30 megawatts). Most of these are awaiting contractor signatures to begin, with demolition already underway in Vega Baja.
Genera PR and Tesla signed a contract in February 2025 for the installation of the Megapacks. The majority of the projects are expected to be completed by the end of 2026, with the Aguirre plant requiring an additional two to three years for completion due to the need for further equipment procurement and construction.
The core strategy involves charging the batteries during off-peak hours – specifically at night when demand is lower and energy from existing sources like AES coal and natural gas plants is cheaper. This stored energy will then be dispatched during peak demand periods, typically between 6:00 pm and 10:00 pm, reducing the need to activate more expensive diesel generators.
Officials anticipate the battery storage systems will result in a 90% reduction in load shedding events affecting the region. furthermore, the project is projected to generate annual savings of $100 million for consumers.
Approximately $533.5 million of the total investment will be allocated to the purchase of the batteries and related equipment, with the remaining funds covering installation costs and demolition work. To minimize expenses, the battery systems will be installed within the existing yards of the power plants, avoiding the need to acquire additional land.
