Transforming Puerto Rico’s Grid with Battery Power
- Written by Resource Innovations
- October 20, 2025
Overview
Puerto Rico’s power grid has long faced reliability challenges due to aging infrastructure, underinvestment, and exposure to natural disasters. The devastation caused by Hurricane Maria in 2017 underscored the urgent need for a more resilient and modern energy system. In response, the Puerto Rican legislature enacted Act 17 in 2019, mandating a transition to a cleaner, decentralized grid with a target of 100% renewable energy by 2050.
The law triggered a major structural reform of the energy sector, including the unbundling of generation from transmission and distribution (T&D). In 2021, LUMA Energy took over T&D operations under a 15-year public-private partnership, replacing the Puerto Rico Electric Power Authority (PREPA) in that role, while generation assets remained under separate management.
Program Snapshot
Opportunity
Expanding energy efficiency and demand response solutions is key to Puerto Rico’s energy transformation, as it cuts costs, reduces fossil fuel dependence, improves grid reliability, and supports local job growth.
Despite ongoing grid challenges, Puerto Rico leads the U.S. in per capita adoption of rooftop solar and residential battery storage. Building on this momentum, LUMA proposed a comprehensive energy efficiency and battery demand response plan in 2022.
At its core is the Customer Battery Energy Sharing (CBES) pilot, launched by LUMA in November 2023. This innovative program uses behind-the-meter batteries as flexible grid resources during emergencies, boosting resilience and delivering direct benefits to customers. Administered by Resource Innovations (RI) and Scott Madden and designed with equity in mind, CBES enables participation even for those without battery ownership through third-party aggregators and performance-based incentives.
Solution
RI is a key partner in the design and delivery of the CBES program, supporting daily operations and long-term strategy to strengthen Puerto Rico’s grid and expand access to clean energy.
Key Contributions:
- Program operations & expansion: Manages customer validation, battery dispatch coordination, and new aggregator onboarding.
- Strategy & regulatory support: Provides guidance on program design, scalability, incentive structures, and grid services use cases such as time-of-use optimization and backup power.
- Performance tracking: Developed real-time dashboards that monitor solar generation, battery usage, and grid interaction—helping LUMA track performance and improve dispatch strategies.
- Testing & insights: Conducted in-depth testing to fine-tune pilot operations and dispatch strategy. Key outcomes include:
- Evening dispatches delivered the most grid relief
- Shorter events allowed for higher battery power output
- Emergency simulations led to faster response protocols
- Seasonal testing shaped summer-specific dispatch timing
- Customer engagement: Gathered customer feedback during the pilot phase to improve outreach, satisfaction, and program design.
- Advanced grid technology: Leading the rollout of a grid-edge DERMS platform to automate dispatch, integrate aggregator systems, and support future DER roadmap.
"Resource Innovations has been an essential partner in launching and scaling the CBES program. Their strategic and operational support expertise in battery storage and demand response helped us build a first-of-its-kind Virtual Power Plant solution for Puerto Rico’s grid.”
Jaun C. Patino PeraltaDirector Luma Energy, Demand Side Management Programs
Results
By 2025, CBES had evolved into one of the nation’s largest BTM Virtual Power Plants (VPPs) and received regulatory approval to scale into a 3-year permanent program. In response to a projected 500 MW resource shortfall for Summer 2025, CBES is set to expand further, with plans to auto-enroll over 60,000 battery systems. This growth will preserve customer choice while solidifying CBES as a key pillar of Puerto Rico’s energy resilience.
The RI team continues to collaborate with LUMA, providing strategic guidance and administrative support for incentive structures and grid services use cases such as time-of-use optimization, backup power, peak shaving, and locational dispatch.
Currently, CBES is the only active demand response program addressing Puerto Rico’s grid reliability challenges. Its rapid growth and planned expansion position it as a foundational resource for the island’s long-term energy stability and resilience.
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