A unit of US LNG firm New Fortress Energy has secured a contract to operate and manage Puerto Rico’s power generation system.
According to a statement by NFE, the Puerto Rico Public-Private Partnerships Authority (P3A) has selected Genera PR for a 10-year operation and maintenance agreement with the Puerto Rico Electric Power Authority (PREPA).
Under the deal, Genera will operate, maintain, decommission, and modernize the PREPA-owned thermal power generation system of some 3,600 MW after a mobilization period.
Also, Genera will manage the operating budget, fuel contracts and federal funds for the generation fleet on behalf of PREPA.
NFE said that the P3A has selected Genera after a competitive process that began in May 2020 while the contract has received all necessary regulatory approvals, including from the government of Puerto Rico.
“With this historic step, Puerto Rico guarantees the continuity of the transformation of the island’s electrical system, and the transition towards the integration of renewable energy sources as established by the Integrated Resource Plan (IRP) and Puerto Rico‘s public energy policy,” NFE said.
Furthermore, over the next several months, Genera will work closely with the government of Puerto Rico and PREPA in the mobilization phase to transfer operations and onboard PREPA’s existing operational workforce, NFE said.
“All Puerto Ricans deserve access to clean, reliable and low-cost power,” Wes Edens, chairman and CEO of NFE, said in the statement.
“This partnership will provide meaningful cost savings for consumers and businesses, improve reliability and reduce the environmental impact of an aging thermal generation system,” Edens said.