Senate panel presses LUMA, UMA and regulators on interconnection, tranches and battery plans
February 07, 2024 | Senate, Committees, Legislative, Puerto Rico, International
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Presiding Senator opened the hearing by listing three priorities: renewable tranches, federal funds and tariffs, and invited LUMA to present. Germon Azterio of LUMA told the committee "no hay suficiente capacidad de generación confiable" and walked members through LUMA's role in feasibility, facility and system-impact studies required for each tranche and for new interconnections.
Why it matters: Committee members and technical witnesses said developers cannot reliably price bids without clearer interconnection cost estimates and earlier studies. LUMA described a strategy to add battery storage "detrás de esos puntos de interconexión" at existing solar farms to accelerate deployment and lower costs by avoiding new interconnection construction; LUMA said seven developers are now proposing such battery projects.
Key facts: LUMA listed three utility-scale projects it is facilitating: Punta Lima (26 MW), Project 01 (90 MW) and Exerta Tech (60 MW), and said the first 18 approved solar projects total 844 MW. The panel reported tranche-two solicitations returned 419 MW where 500 MW had been expected; tranche-three and battery bid volumes were also discussed as benchmarks for evaluation. The panel noted that some tranche-one contracts lacked access to the federal Loan Program Office (PO) financing, which raised costs in those cases; subsequent tranches can use PO financing if the request is submitted before the PO deadline.
Exchanges: Multiple senators pressed LUMA and the negotiado to publish clearer, project-specific interconnection cost guidance so bidders know fixed and variable costs before bidding. An engineer on the panel explained why system modeling must be updated as each tranche's awarded resources are integrated, including short-circuit current and protection changes that affect how much grid reinforcement is needed.
Follow-up and next steps: The committee asked LUMA and the negotiado to provide a concise table showing every tranche project, its procurement status, percent complete (if under construction), expected in‑service year and any known interconnection-cost estimates. The chair requested that table within one month.
Quotes: "No hay suficiente capacidad de generación confiable" — Germon Azterio (LUMA). "Si esos valores están en cinco y ellos vienen con siete dólares, esa teoría de que hay economía no existe" — Unidentified Regulator.
Ending: The hearing closed with the committee asking stakeholders to return with the requested project-status table and clarifications about which projects can access PO financing and what standardized interconnection cost data can be published ahead of bids.
Why it matters: Committee members and technical witnesses said developers cannot reliably price bids without clearer interconnection cost estimates and earlier studies. LUMA described a strategy to add battery storage "detrás de esos puntos de interconexión" at existing solar farms to accelerate deployment and lower costs by avoiding new interconnection construction; LUMA said seven developers are now proposing such battery projects.
Key facts: LUMA listed three utility-scale projects it is facilitating: Punta Lima (26 MW), Project 01 (90 MW) and Exerta Tech (60 MW), and said the first 18 approved solar projects total 844 MW. The panel reported tranche-two solicitations returned 419 MW where 500 MW had been expected; tranche-three and battery bid volumes were also discussed as benchmarks for evaluation. The panel noted that some tranche-one contracts lacked access to the federal Loan Program Office (PO) financing, which raised costs in those cases; subsequent tranches can use PO financing if the request is submitted before the PO deadline.
Exchanges: Multiple senators pressed LUMA and the negotiado to publish clearer, project-specific interconnection cost guidance so bidders know fixed and variable costs before bidding. An engineer on the panel explained why system modeling must be updated as each tranche's awarded resources are integrated, including short-circuit current and protection changes that affect how much grid reinforcement is needed.
Follow-up and next steps: The committee asked LUMA and the negotiado to provide a concise table showing every tranche project, its procurement status, percent complete (if under construction), expected in‑service year and any known interconnection-cost estimates. The chair requested that table within one month.
Quotes: "No hay suficiente capacidad de generación confiable" — Germon Azterio (LUMA). "Si esos valores están en cinco y ellos vienen con siete dólares, esa teoría de que hay economía no existe" — Unidentified Regulator.
Ending: The hearing closed with the committee asking stakeholders to return with the requested project-status table and clarifications about which projects can access PO financing and what standardized interconnection cost data can be published ahead of bids.
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