MontalvaI have to assume this was what Ronnie Strasser was referencing related to finding out about Montalva by mid October and likely nothing by the end of the year.
Note the pricing aspect. We were told Montalva was 25% cheaper per MWh, the battery storage of 40MW was given free and the $15M+ in transmission line upgrades were also free.
- Commercial Operations in (24) months.
Montalva was to be in (31) months.
- There is also a ESSA (Energy Storage Service Agreement) required. This has never been mentioned previously. Only the PPOA.
- As for the PPOA, it has been in front of the FOMB for over a year - " On October 4, 2023,...The agreement is with the Puerto Rico Financial Oversight and Management Board for approval." - SEC 20F filing - Confirmed site control?
Option agreement ends soon. Optioner has died. Are all the actual land owners still onboard? Properties are going up for sale around the site. This risk factor is noted in the SEC filings.
- As for financing. There has been no update on a "mandate letter" for Montalva, let alone a firm commitment letter for financing of the project based on the actual PPOA. GRB is currently offering their project at a signifcant discount to any other proponents. The other proponents are having difficultly financing at the prices that were just cancelled in the Tranche 3.
- The project still requires Environmental Approvals for which there are numerous groups waiting on the sidelines in opposition of the project. These groups applied to the courts to have the project stopped but the courts response was basically, "They don't have a PPOA so the case is currently irrelevant."
- Has an interconnection study for the project been completed and approved? Silence on that one.
Again, silence is a big issue here.
"This is to notify Proponents that Tranche 3 has been cancelled. Pricing received was determined to be unsustainable for the citizens of Puerto Rico. To continue its effort to further the goals of the Renewable Energy Portfolio Act 82-2010, as amended by Act 17-2019, PREB will conduct a recalibrated and expedited Tranche 4 solicitation (“Tranche 4”) with a limited scope and expedited time frame. The Tranche 4 RFP is located under the Documents tab on the PREB-IC Tranche 4 Website.
The schedule for this RFP is:
October 24, 2024 RFP issued
October 24, 2024 The Interconnection Request Queue Website opens
October 24, 2024 The Tranche 4 Website opens
November 7, 2024 The Interconnection Request Queue Website closes
November 25, 2024 Bid submissions due by 12:00 PM AST
December 31, 2024 Accepted Contracts submitted to PREB for approval
To facilitate this schedule, project details bid in Tranche 3 will automatically be imported into the new Interconnection Request and Tranche 4 websites. Interconnection Requests must be submitted before starting a Tranche 4 proposal. Bidders who participated in Tranche 1 and 2, and others who have not previously participated, are also encouraged to submit a proposal beginning with an Interconnection Request.
Eligible bid types are:
- Renewable resources for a term of 25 years
- Standalone BESS for a term of 20 years, to be charged and discharged by LUMA
- Renewable resources co-located with standalone BESS will be accepted but individual contracts (a PPOA and ESSA) will be required.
Minimum requirements:
- Confirmed Site Control
- A viable plan to obtain financing
- A plan to begin commercial operations within 2 years of contract execution
- Demonstrated experience financing, constructing, and operating a similar project
- Pricing no greater than the fixed target price (no price escalation) of
- $125/MWh for renewable resources,
- $25,000/MW-mo for 4-hour energy storage systems, or
- $33,750/MW-mo for 6-hour energy storage systems.
- Firm and final pricing: there will be no refresh opportunity"