Named Puerto Rico New Generation Partners, the consortium plans to replace the existing fuel-based plants with 1,500MW natural-gas fired combined-cycle gas turbine plants, and 400MW solar projects.
The facilities will source gas using existing liquefied natural gas-delivery infrastructure, Caribbean Business reported.
The project also includes transmission and distribution lines upgrades across the island.
NRG Energy senior director Thomas Atkins said that the power generated from these facilities will be sold to the island’s electricity supplier, Prepa, under a 30-year power purchase agreement.
The proposed project, which will help the power utility reduce its dependency expensive fuel oil, is expected to allow Prepa save approximately $1.5bn per annum.
Prepa is negotiating with its creditors to reduce its $9bn debt, and intends to reveal a business plan next week.
In March, Prepa’s group of creditors, including OppenheimerFunds and Franklin Templeton, offered $2bn plan to modernize Prepa’s facilities. However, the utility rejected the proposal saying it does not meet its requirements.
Image: York Capital Management, NRG Energy and ITC consortium plan to upgrade electrical infrastructure in Puerto Rico. Photo: courtesy of twobee / FreeDigitalPhotos.net.
