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PRFAA

PUERTO RICO FEDERAL
AFFAIRS ADMINISTRATION

PRFAA

GOVERNMENT OF PUERTO RICO

Governor González-Colón and Genera Announce Modernization of the Electric System at Palo Seco

San Juan, Puerto Rico — Genera PR announced today the completion of the fuel conversion process from diesel to natural gas for the three aeroderivative gas turbines, FT8 MOBILEPAC units, located at the Palo Seco Power Plant. This milestone represents a significant advancement in the modernization of Puerto Rico’s electric system and aligns with the public energy policy promoted by the Government of Puerto Rico. Collectively, these units can generate up to 81 megawatts (MW).

This progress strengthens the reliability of the electric system, reduces operational costs, and promotes cleaner energy generation. The transition to natural gas is expected to generate estimated annual savings of up to $8.5 million, directly benefiting residents and Puerto Rico’s economy, while also reducing the environmental footprint by replacing diesel with a cleaner and more stable alternative. Environmental data indicate that, compared to diesel, the use of natural gas can reduce sulfur oxide emissions by up to 90%, in addition to significantly lowering particulate matter emissions, thereby improving air quality in the surrounding area and directly benefiting nearby communities.

Operating these turbines on natural gas also provides additional benefits, as maintenance requirements are less frequent and more cost-effective than when operating on diesel.

“Today, we successfully completed the conversion of Mega Generators 1, 2, and 3 at the Palo Seco Power Plant from diesel to natural gas. All of these conversions and related processes were submitted to and approved by the Puerto Rico Energy Bureau, made possible by the legislative changes enacted last year and by our energy policies. This initiative improves system reliability and will generate estimated annual savings of $8.5 million, with a total potential of up to $94.6 million per year once additional conversions are completed. This means these units will operate using a lower-cost fuel, helping to reduce electricity bills for consumers. The conversion also significantly reduces pollutant emissions, strengthens the stability of electric service in the metropolitan region, and forms part of the strategic use of federal funds allocated to modernize Puerto Rico’s electric system,” said Governor Jenniffer González Colón. She was joined by Josué Colón, Energy Czar and Executive Director of the Public-Private Partnerships Authority (P3A), and Mary Zapata, Executive Director of the Puerto Rico Electric Power Authority (PREPA).

“The fuel conversion at Palo Seco demonstrates that when public policy alignment, regulatory compliance, and responsible technical execution come together, the results translate into tangible benefits for the people,” said Iván Báez, Vice President of Public and Government Affairs at Genera PR. “This project is fully aligned with the vision and priorities established by Governor Jenniffer González Colón’s administration and the federal government, focused on strengthening electric system reliability and reducing costs for residents.”

The fuel conversion was made possible after completing a comprehensive and rigorous process before the Puerto Rico Energy Bureau, in full compliance with all technical, regulatory, and due process requirements established by law. This reaffirms Genera PR’s commitment to transparency, sound governance, and respect for the existing regulatory framework.

This achievement is part of a broader roadmap to enhance the generation fleet and install new backup units and battery systems, through which Genera continues to implement strategic projects that support the Government of Puerto Rico’s public policy, strengthen electric system reliability, and create the conditions necessary to produce more affordable energy for the benefit of all Puerto Ricans.

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