The Puerto Rico Electric Power Authority (PREPA) has contacted Canada-based Greenbriar Capital with the intention of reopening negotiations to progress the 100MW Montalva solar project.
The shovel-ready $305m Montalva project, which also includes a 30MW battery, will be the largest renewable energy project in the Caribbean when built.
The plant will be located in the municipalities of Guanica and Lajas.
Generating 100% renewable energy, the solar-plus-storage plant is estimated to provide PREPA customers with $1-2bn in energy savings over the 25-35-year life of the facility.
According to Greenbriar Montalva will add 900 direct jobs during the construction phase.
Greenbriar chief executive Jeff Ciachurski said: “We have always believed this is a world class project, and we look forward to working with PREPA to get it done.
“It will give PREPA what it needs most – affordable, safe and reliable clean energy for the citizens of Puerto Rico.”
Greenbriar will develop the project using project financing.
For several years the company has had a contract with PREPA for the project permitting it to sell 100MW of solar-generated electricity to the authority.
The contract price, which is public information, starts at $0.15 per kilowatt hour and escalates at 2% annually, with a weighted average price of $0.21 per kilowatt hour.
In addition, Greenbriar retains the renewable energy certificates which are contracted for in Puerto Rico at an average price of $0.03 per kilowatt hour.
In April 2018 the US Financial Management and Oversight Board (FOMB) designated Montalva a ‘critical project’.
The US Congress established the FOMB to recommend and expedite critical energy and infrastructure projects.