Written by: Anthony O. Maceira
The Puerto Rico Energy Bureau (NEPR) has directed the Puerto Rico Electric Power Authority (PREPA) to deliver a comprehensive progress report on the island’s temporary emergency generation procurement process by October 15, 2025.
The order, issued on October 11, 2025, follows concerns over limited visibility into the status of the procurement, which began more than six months ago through the Office of Independent Procurement (3PPO).
The Bureau noted that, despite repeated authorizations to secure temporary generation capacity, it has not received sufficient updates on project development, vendor selection, or supporting documentation.
In early 2025, Puerto Rico’s grid faced a generation shortfall after the failure of Unit 1 at the Aguirre Power Plant, reducing available capacity and straining the system.
To stabilize the grid, the Bureau authorized PREPA to procure up to 800 MW of temporary generation through the 3PPO.
The initiative was designed to supplement the island’s baseload while longer-term generation and renewable-energy projects continue under development.
During an October 9, 2025 press conference at the Palo Seco Power Plant, Governor Jenniffer González Colón and Energy Czar Ing. Josué Colón discussed ongoing restoration efforts and the transition toward natural-gas generation as a more cost-effective alternative to diesel.
Officials confirmed that Generator No. 4 at Palo Seco had returned to operation in its testing phase, adding roughly 150 MW of capacity.
When questioned about delays in the 3PPO process for the 800 MW temporary generation project, officials explained that the 3PPO had already submitted its recommendation to PREPA and that a Request for Information (RFI) was being finalized.
Once PREPA reviews the RFI responses, the proposal will proceed to its Governing Board and subsequently to the Fiscal Oversight and Management Board (FOMB) for final evaluation.
In its latest resolution, the NEPR required PREPA to provide the following information by October 15, 2025:
The Bureau also warned that failure to comply may result in administrative fines or sanctions.
The NEPR’s order underscores the growing oversight of Puerto Rico’s energy-sector procurements, especially those initiated under emergency conditions.
The forthcoming report from PREPA is expected to clarify the timeline for installing temporary generation and to shed light on the coordination between PREPA, the 3PPO, and the FOMB in advancing the 800 MW initiative.
MZLS will continue monitoring developments before the Bureau as Puerto Rico moves forward with its energy-generation and reliability strategies.
