PREPA revises the RFPSo this is my interpretation of some information I read that was just released a day ago. Jeff may scold me again, but hopefully not. It's not my intention to waste his time correcting me but if I do so I apologize in advance. The purpose of stockhouse is to share and discuss information so here go....
It seems the learning curve continues for PREPA as they work out the flaws of the RFP process.
PREPA just released suggested revisions for the upcoming Tranches based on what they've learned during Tranche 1.
The PDF of these revisions can be found
HERE More importantly they're making suggested revisions for this current Tranche that GRB is involved in.
On page 15 they've come to realize the grid lacks a GCCC system (grid control center communication system) and is incapable of "communicating with, dispatching and integrating VPP resources" (virtual power plants or small renewable projects). Funds from FEMA should pay for this system but the timeline for acquiring these funds are unknown. Because of this
"PREPA recommends suspending the procurement of VPP resources as part of the RFP's for Tranche 1 and 2 until such time as PREPA purchases the GCCC system." So it seems this would play in our favor since Montalva is a utility-scale project, not a VPP. By eliminating the VPP's from Tranche 1 there will be less competition, so to speak, and therefore more MW up for grabs. They will need projects like Montalva even more now.
They are also pushing energy storage big time, which Montalva has. This is in part because of something called "Peak Irradiance Period Curtailment." Page 14 will explain what that's all about, but their solution is more energy (batteries) storage or favoring "non-solar renewable energy resources, such as wind power projects." They go on to mention "carve-outs for wind turbine projects in
future RFP Tranches", no mention of implementing that in Tranche 1 so we might ok there.
"Shovel Ready" projects, which Montalva is one of, were mentioned on page 34 of the PDF. The wording was interesting here as they said: "If "shovel-ready" utility scale renewable projects are available for expedited installation under agreements previously executed by PREPA, PREPA shall procure stand-alone energy storage projects with multiple hour duration and roughly one-half the projected capacity of these "shovel-ready" projects to be expedited for installation, either at utility scale or at distributed scale as a VPP, as part of RFP Tranche 1 selections."
Now I need Jeff's help on this one but when viewing the context i believe they were just making the point that a shovel ready project without storage has to be matched up with an energy (battery) storage project at a one-half ratio (80MW capacity/40MW storage). The technical aspect is not my concern here, it's how they're viewing the shovel-ready projects as "available for expedited installation." That seems positive, but maybe I'm just reading too deep into things.
Anyways, that's all I got for now.
GLTA