Puerto Rico to Bolster Energy Grid with $758 Millionโฃ Tesla Megapack Installation
Puerto Ricoโ is undertaking a important energy infrastructure project involving the installation of Tesla Megapack battery storage systems at six power plants across the island. โคThe initiative, representing a total federal investment of $758 million, โขaims to enhance grid stability, reduceโ reliance on costly and polluting diesel generation, and considerably decrease the frequencyโ of service interruptions known โas “load shedding.”
The project began in October 2025 โฃwith the installation of a 52 megawatt system at the Cambalache plant. โSimilar projects are plannedโข for vega Baja (49 megawatts), Paloโฃ Seco in Toa Baja (95 โคmegawatts), Yabucoa in โHumacao (40 megawatts), Aguirre in Salinas (164 megawatts), and Costa Sur inโ Guayanilla (30 megawatts). Mostโ of these are awaiting contractor signatures to begin, with demolition โalready underway in Vega Baja.
Genera PR and Tesla signedโ a โฃcontract in โFebruary 2025 for the installation of the Megapacks. The majority of the projects are expected to be completedโข by the end ofโ 2026, with theโข Aguirreโค plant requiring an additional two to three years for completionโฃ due to the need for further equipment procurement and construction.
The โcore strategy involves charging the batteries during off-peak hours – specifically at night when demand is lower and โขenergy fromโค existing sources like AES coal โฃand natural gas plants isโข cheaper. This stored energy will thenโข be dispatched during peak demand periods, typically between 6:00 pm and 10:00 pm, โฃreducing the need to activate more expensive diesel generators.
Officials anticipate the battery storage โsystems will result in a 90% reduction in load shedding events affecting the region. furthermore, the projectโข isโ projected to generate โannual savings of $100 million for consumers.
Approximately $533.5 million of the โฃtotal investmentโค will be allocated to the โขpurchase of the batteries and related equipment, with the remainingโ funds covering installation costs and demolition work. To minimize expenses,โฃ the battery systems will be installed within the existing yards of the power plants, avoiding the need to acquire additional land.