New Fortress Energy (NFE) has announced that its subsidiary Genera has been awarded a 10-year contract for the operation and maintenance of thermal generation assets in Puerto Rico.
The contract, which was granted by the Puerto Rico Electric Power Authority (PREPA), will see Genera operate, maintain, decommission, and upgrade the PREPA's nearly 3,600MW thermal power generation system.
In addition, Genera will manage the operating budget, fuel contracts and federal funds for the thermal power generation fleet in support of PREPA. The contract is expected to support the transformation of Puerto Rico's electrical system and its transition towards renewable energy adoption, while providing cost savings for consumers and businesses, improving reliability, and reducing the environmental impact of an aging thermal generation system.
NFE chairman and CEO Wes Edens said: “As large investments are made to modernize Puerto Rico's grid and transition to renewable energy, this partnership will provide meaningful cost savings for consumers and businesses, improve reliability and reduce the environmental impact of an aging thermal generation system.
“We believe Puerto Rico's transformation to renewables supported by low-carbon fuel will be a model for markets around the world and a significant step forward in our company's mission.”
NFE said that the selection is in line with the requirement established by Puerto Rico Electric System Transformation Act (Act 120-2018).
In addition, the contract has received all necessary regulatory approvals from the government of Puerto Rico, the Fiscal Oversight Management Board and Electricity Bureau.
P3A executive director Fermín Fontanés Gómez said: “This public-private partnership marks a milestone in the island's energy history. Today we achieved full compliance with the Act 120 requirement, to offer Puerto Rico the opportunity to have an electrical power system that can be trusted by the citizens.
“After this process that lasted more than two years, we can ensure that we are getting closer to reaching the goals established in the IRP, to continue moving towards an energy generation model based on renewable resources. This goal will have an impact on us, but more importantly, it will also impact future generations.”
