New Fortress Energy said that its that Genera PR unit was hired by the Puerto Rico Public-Private Partnerships Authority for a 10-year operation and maintenance agreement with the Puerto Rico Electric Power Authority (PREPA).
Under terms of the deal, Genera will operate, maintain, decommission and modernize the PREPA-owned thermal power generation system of around 3,600 MW. Genera will also manage the operating budget, fuel contracts and federal funds for the generation fleet on behalf of PREPA.
A press release said the contract received regulatory approvals from the government of Puerto Rico, the Fiscal Oversight Management Board and Puerto Rico’s Electricity Bureau.
An Energy Department study released in January said that with little room on the island for large-scale solar farms or wind generators, Puerto Rico should aim to reach its clean-energy goals by installing solar panels on all suitable rooftops, along with airports, brownfields and industrial areas.
The two-year study came after the U.S. pledged to help modernize Puerto Rico’s power grid by looking at wind and solar resources on the island, land availability and power consumption. Government officials vowed to ramp up from 3% to 40% renewable energy by 2025, and 60% by 2040.
Features of Genera’s O&M proposal included:
– Expected cost-savings through fuel management and streamlined operations;
– Improved reliability and efficiency with a focus on distributed power and microgrids;
– Retirement of antiquated power plants while also working to ensure reliable, low-cost and cleaner generation is available in load centers to support the move to renewables; and
– Commitment to local hiring and plans to recruit, train and incentivize employees.
New Fortress Energy describes itself as a liquefied natural gas (LNG) company with operations in the U.S., Europe, Latin America, Asia and the Caribbean. The company was co-founded by Wes Edens, a co-owner of the Milwaukee Bucks National Basketball Association franchise.
Fortress has developed and owned transportation and infrastructure projects as well as businesses in real estate, health care, financial services, media, and entertainment. Its web site says that it finances, designs and builds gas-fired power generation and industrial facilities that use LNG.
In November, New Fortress signed agreements with Petróleos Mexicanos, Mexico’s state-owned oil company, to develop and operate an integrated upstream and natural gas liquefaction project off the coast of Veracruz in southeastern Mexico.
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