Genera PR has started construction on a 52-megawatt battery energy storage system at the Cambalache Power Plant in Arecibo, Puerto Rico. The $109.5 million project, funded by federal grants, uses Tesla Megapack technology to bolster the island's grid resilience. It forms part of a larger initiative to install 430 MW of storage across multiple sites.
On October 23, 2025, Genera PR held a groundbreaking ceremony for the 52-megawatt battery energy storage system at the Cambalache Power Plant in Arecibo. This project is backed by $109.5 million in federal funds and involves the installation of 68 Tesla Megapack batteries. Site preparation and demolition work have begun, with delivery scheduled for April 2026 and operations expected by the end of that year, following a 12-month construction period.
The initiative is part of an islandwide effort to add 430 MW of storage capacity using Tesla Megapack technology at six power plants: Cambalache in Arecibo, Vega Baja, Palo Seco in Toa Baja, Yabucoa in Humacao, Aguirre in Salinas, and Costa Sur in Guayanilla. In February, Genera PR signed a contract with Tesla for the $533.5 million equipment purchase, which is Tesla's largest project of its kind in the United States. The total battery energy storage system project amounts to $758 million in federal investment, with 75% of the equipment costs funded—$404.7 million already disbursed and reimbursed through the Federal Emergency Management Agency and the Puerto Rico Department of Housing’s Community Development Block Grant–Disaster Recovery program.
“The installation of these storage systems represents a giant leap in the modernization of Puerto Rico’s electric system,” said Iván Báez, vice president of public and government affairs at Genera PR. “These batteries will allow us to respond more efficiently to demand fluctuations, reduce our dependence on fossil fuels and support the integration of new generation technologies. This translates into greater stability and fewer outages for our communities.”
The systems aim to improve grid stability and reliability, reduce load shedding events by 90%, increase renewable energy integration, regulate grid frequency, enable instant energy dispatch during peak demand, and generate annual savings of up to $100 million in generation costs. The Cambalache and Vega Baja systems are expected to be among the first operational, with full deployment across all sites by late 2027.
Genera PR operates about 60% of Puerto Rico’s electric generation under a public-private agreement with the government, managing legacy power plants and supporting grid stabilization projects. “At Genera PR, it is our priority to mobilize and execute all federally funded projects swiftly and efficiently,” Báez added. “Every federal dollar is invested responsibly and under the highest standards of compliance, with the goal of transforming the island’s energy infrastructure and delivering real results to the people.”