Puerto Rico announces competitive procurement for new flexible generation capacity

The Puerto Rico Public-Private Partnerships Authority (Authority) recently issued a Request for Qualifications (RFQ) to procure generation capacity through power purchase and operating agreements with developers of new flexible generation projects, under long-term public-private partnership (PPP) contracts.

This procurement is a key component of Puerto Rico’s ongoing transformation of its electric system – aiming to enhance resource adequacy, reliability, and resilience in alignment with the island’s energy public policy and regulatory framework.

Regulatory and policy framework

The RFQ is issued pursuant to the mandates of the Puerto Rico Energy Bureau (PREB) orders from March and May 2025, which require a technology-agnostic procurement process for firm generation capacity.

The process is governed by multiple statutes, including:

• Act 83-1941 (Puerto Rico Electric Power Act)
• Act 120-2018 (Electric Power System Transformation Act)
• Act 29-2009 (PPP Act)
• Act 57-2014 (Energy Transformation and RELIEF Act)
• Act 17-2019 (Energy Public Policy Act)
• Act 1-2025 (amending intermediate renewable energy targets)

Project scope

The RFQ details the following parameters for facility development:

• Objective: Procure up to 3,000 megawatts (MWs) of firm, flexible generation capacity to stabilize the grid and support renewable integration
  
  
• Scope of work: Siting, development, permitting, engineering, design, financing, construction, installation, testing, management, operation, and maintenance
  
  
• Eligible technologies: All generation technologies except coal-fired and nuclear resources (proposals may include thermal generation, stand-alone battery storage, renewables coupled with batteries, and waste-to-energy, provided they qualify as firm capacity)
  
  
• Facility requirements: Power generation facilities must not exceed 400 MWs, must be sited close to load centers, and may leverage existing Puerto Rico Electric Power sites for efficiency in permitting and interconnection
  
  
• Timeline: Facilities must be operational within 30 months of notice to proceed

Procurement process

The procurement will proceed in three stages:

1. RFQ process: Identification and shortlisting of qualified respondents based on technical, financial, and operational criteria
   
   
2. RFP process: Qualified respondents will receive access to the Request for Proposal, data room, site visits, and draft PPP contracts – the Authority may negotiate with more than one qualified proponent before making final awards
   
   
3. Award and implementation: Execution of the awarded PPP contracts and commencement of project development

Key dates include:

• October 30, 2025: Deadline for submission of clarification requests
• 5:00pm AST on December 3, 2025: Deadline for Statement of Qualification (SOQ)
• January 13, 2026: Notification of qualified respondents

Qualification and evaluation criteria

Respondents must demonstrate the following:

• Experience in siting, developing, permitting, engineering, financing, constructing, and operating generation facilities up to 400 MWs
  
  
• Financial stability and ability to raise significant capital
  
  
• Technical expertise, including compliance with environmental and safety regulations
  
  
• Ability to coordinate with a Spanish-speaking workforce and navigate Puerto Rico’s regulatory environment

Conclusion

This procurement represents a significant opportunity for the modernization and stabilization of Puerto Rico’s electric system through public–private collaboration. Interested parties are encouraged to review the RFQ and all referenced statutes and regulations to ensure compliance with the requirements and timelines established by the Authority.

For further details, consult the official RFQ and related regulatory documents available on the Authority’s website.

For more information, please contact the authors.