Polaris Renewable Secures FOMB Approval for 71.4 MW Puerto Rico Battery Storage Deal

Context Puerto Rico’s grid has struggled with reliability after years of hurricane damage and aging infrastructure. The Accelerated Storage Addition Program (ASAP) aims to bolster the system by pairing utility‑scale batteries with existing generation sites. Polaris’ Punta Lima wind farm, already operating on the island’s east coast, will host the new Battery Energy Storage System (BESS). The project requires sign‑off from three bodies: the Puerto Rico Energy Bureau, PREPA’s Governing Board, and the Financial Oversight and Management Board (FOMB).

Key Facts FOMB approved the SO1 Agreement for the 71.4 MW BESS on May 8, 2026, completing the three‑step regulatory process. Under the ASAP framework, PREPA will pay the project developer a fixed monthly rate ranging from $16,000 to $20,600 for each megawatt of capacity, with the higher amount applying if the investment tax credit is not secured. CEO Marc Murnaghan called the approval the “final major regulatory milestone” and said it advances grid reliability while enhancing the long‑term value of the Punta Lima asset.

What It Means The cleared agreement removes the biggest regulatory obstacle, allowing Polaris to move toward finalizing construction contracts and securing financing. Investors can now focus on capital‑expenditure updates and the commercial‑operation date, which the company expects to refine within a month. Successful construction will deliver dispatchable storage that can smooth wind output and provide frequency support to the island’s grid.

Watch for Polaris’ updated cost estimates and construction timeline, as well as any developments regarding the investment tax credit eligibility that could affect the payment rate.