Polaris Renewable Energy Announces Approval of SO1 Agreement by PREPA

Executive Summary

• Governing Board of PREPA approved the Battery Energy Storage System Standard Offer Agreement (“SO1 Agreement”) for Polaris’s Punta Lima battery storage project.
• The agreement covers a 71.4 MW (35.7 MW × 2) utility‑scale BESS, with commercial operation expected 12 months after execution of the final agreement and a 20‑year service term.
• Execution remains subject to approval by Puerto Rico’s Financial Oversight & Management Board (FOMB), but Polaris is optimistic about timely completion.

Key Details

• Agreement Approval: PREPA Governing Board approved the SO1 Agreement on Feb 19, 2026; formal notice received Feb 27, 2026.
• Regulatory Step Remaining: Final execution pending approval by Puerto Rico’s Financial Oversight & Management Board (FOMB).
• Project Structure:
• Resource Provider: Polaris Power US, Inc. (PPUS) – responsible for BESS installation and operation.
• Generation Facility Owner: Punta Lima Wind Farm, LLC (PLWF) – owner of the co‑located wind generation asset.
• BESS Capacity: 71.4 MW total (two units of 35.7 MW each).
• Commercial Operation Date (COD): Forecast to commence 12 months after execution of the final SO1 Agreement.
• Contract Term: 20‑year term from COD, with monthly fixed and performance‑based payments from PREPA for energy storage services (capacity, grid support, etc.).
• Strategic Context: Part of Puerto Rico Accelerated Storage Addition Program (ASAP) aimed at enhancing island grid reliability via utility‑scale battery storage co‑located with existing generation facilities.
• CEO Comment: Marc Murnaghan highlighted the approval as a key step forward for Polaris’s battery energy storage initiatives in Puerto Rico and reaffirmed commitment to grid reliability and leveraging the Punta Lima asset.

Notable Quotes

“The PREPA Governing Board's authorization of the SO1 Agreement marks an important step forward in the development of our battery energy storage initiatives in Puerto Rico. This project further reinforces our commitment to enhancing grid reliability on the island while building on the strategic value of our existing Punta Lima asset.” – Marc Murnaghan, CEO, Polaris Renewable Energy Inc.