Over the last two weeks, Puerto Rico’s electricity grid has relied heavily on tens of thousands of batteries spread throughout the island to meet energy needs and supply power to roughly 3 million residents. This initiative is proving effective.
What began as a small pilot project in 2023 has evolved into the first operational behind-the-meter virtual power plant in Latin America and the Caribbean. It is becoming a vital part of the territory’s struggling energy infrastructure, according to Javier Rúa-Jovet, chief policy officer of the Solar and Energy Storage Association of Puerto Rico.
“It’s grown in the blink of an eye,” he said. “It’s something to be proud of.”
In May, the Puerto Rico Energy Bureau approved an emergency expansion of the “customer battery energy sharing” program, anticipating energy generation shortages during the hotter months. Following this, LUMA Energy, the grid operator, celebrated a significant milestone.
“Last night we successfully dispatched approximately 70,000 batteries, contributing around 48 MW of energy to the grid,” the company announced in a statement on July 9.
This collaboration effectively addressed a generation shortfall of nearly 50 MW, preventing several load shedding events and allowing many communities to maintain their electricity longer.
Before Hurricanes Irma and Maria hit in 2017, Puerto Rico had a minor solar industry, mainly for saving on electricity bills. “Storage was not a thing,” Rúa-Jovet noted. The aftermath of those storms led to the longest blackout in U.S. history.
The devastating experience shifted public perception regarding energy resilience and the fundamental need for reliable energy sources.
The Puerto Rico Energy Public Policy Act of 2019 established solar and storage as integral parts of the island’s energy strategy and set a goal for 100% renewable energy by 2050, with interim goals on the horizon.
Today, Rúa-Jovet highlights that approximately 175,000 households have solar systems, with at least 160,000 equipped with storage. Companies are installing thousands of new systems monthly, and there’s a rising market for batteries that charge from the grid without needing solar panels.
The uptake of solar and storage has been facilitated by financing options from companies like Sunnova and Sunrun, allowing customers to pay a monthly bill similar to what they were previously paying the utility.
Sunrun recently announced it’s deploying over 37,000 home batteries to support Puerto Rico’s grid, boasting a tenfold increase in dispatchable power capacity since last summer. Customers can earn around $200 per battery for participating in the virtual power plant, with the option to adjust their battery settings for different compensation levels.
Chris Rauscher from Sunrun remarked, “This is a clear case, at a large scale, of how residential solar and batteries are keeping the electricity grid energized for everyone. Puerto Rico is leading the way in energy innovation.”
Even Puerto Rico’s Republican governor, Jenniffer González Colón, appears to be shifting her stance to support the island’s existing net-metering system, crucial for expanding solar and storage. This marks a contrast to her earlier support of gas generation.
“Net metering encourages people to use solar panels to assist the system when they aren’t drawing power from the grid,” she said, indicating her opposition to additional charges for those who connect their systems.
González is also addressing concerns with the parent company of the island’s LNG supplier over what she describes as “hostile” tactics amid a payment dispute.
According to Rúa-Jovet, frequent blackouts have made solar and storage essential in Puerto Rico, with demand for these systems unlikely to decrease despite changes in federal policy.
“The only thing that is working consistently in Puerto Rico is solar and batteries,” he asserted.