RCS - Polaris Renewable - Polaris Announces Submission of SO1 Agreement

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RNS Number : 7666U  Polaris Renewable Energy Inc  11 August 2025

Polaris Renewable Energy Announces Submission of the SO1 Agreement to Puerto
Rico Energy Bureau

TORONTO, ON / ACCESS Newswire (https://www.accessnewswire.com/) / August 11,
2025 / Polaris Renewable Energy Inc. (TSX:PIF) ("Polaris" or the "Company"),
is pleased to announce that, on August 8, 2025, LUMA Energy ServCo, LLC
("LUMA"), acting as the authorized representative of the Puerto Rico Electric
Power Authority ("PREPA"), completed the submission of the Battery Energy
Storage System Standard Offer Agreement ("SO1 Agreement") to the Puerto Rico
Energy Bureau ("PREB") as part of the formal approval process. Final approval
is expected within 30 to 90 days following submission to PREB.

The SO1 Agreement is intended to be executed between PREPA and Polaris Power
US, Inc. ("PPUS"), a wholly owned subsidiary of Polaris.

The submission of the SO1 Agreement forms part of the Puerto Rico Accelerated
Storage Addition Program ("ASAP"), a strategic initiative aimed at
strengthening grid reliability across the island through the deployment of
utility-scale battery energy storage systems ("BESS") co-located with existing
generation facilities.

Under this framework, PPUS will act as the "Resource Provider" responsible for
the installation and operation of the BESS, while Punta Lima Wind Farm, LLC
("PLWF"), another subsidiary of Polaris, will continue to serve as the
"Generation Facility Owner" for the Punta Lima site where the storage system
will be located.

Upon execution of the SO1 Agreement and once the BESS project is constructed
and fully operational, the Resource Provider will be entitled to receive
monthly fixed and performance-based payments from PREPA in exchange for
providing energy storage services, including capacity and grid support. The
SO1 Agreement has been submitted with a BESS capacity of 71.4 MW's (35.7 MW's
x 2). Polaris is actively exploring the technical feasibility of expanding the
capacity to 80 MW's (40 MW's x 2), in parallel with the regulatory process.
The Commercial Operation date is forecast to begin on Q3 2026 with the SO1
Agreement running for a 20-year term from the Commercial Operation date.

Marc Murnaghan, CEO of Polaris, commented:

"The submission of the SO1 Agreement represents a significant milestone in
advancing our energy storage strategy in Puerto Rico. We are proud to support
the island's energy resilience goals while leveraging our existing
infrastructure at Punta Lima."

Polaris remains committed to delivering long-term, sustainable energy
solutions across Latin America and the Caribbean and looks forward to working
with all stakeholders throughout the approval and implementation process.

About Polaris Renewable Energy Inc.

Polaris Renewable Energy Inc. is a Canadian publicly traded company engaged in
the acquisition, development, and operation of renewable energy projects in
Latin America and the Caribbean. We are a high-performing and financially
sound contributor to the energy transition.

The Company's portfolio includes a geothermal plant (~82 MW), four run-of
river hydroelectric plants (~39 MW), three solar (photovoltaic) projects (~35
MW) and an onshore wind park (~26 MW).

For more information, contact:

Investor Relations

Polaris Renewable Energy Inc.

Phone: +1 647-245-7199

Email: info@PolarisREI.com

Cautionary Statements

This press release contains certain "forward-looking information" which may
include, but is not limited to, statements with respect to future events or
future performance, the expected use of proceeds or rating(s) of any such
issuance, the Company's acquisition and other investment plans, any benefits
to the Company's financial or business performance, the settlement date of the
bonds and the listing of the bonds on the Oslo Alternative Bond Market. Such
forward-looking information reflects management's current beliefs and is based
on information currently available to management. Often, but not always,
forward-looking statements can be identified by the use of words such as
"plans", "expects", "is expected", "budget", "scheduled", "estimates",
"forecasts", "predicts", "intends", "targets", "aims", "anticipates" or
"believes" or variations (including negative variations) of such words and
phrases or may be identified by statements to the effect that certain actions
"may", "could", "should", "would", "might" or "will" be taken, occur or be
achieved. A number of known and unknown risks, uncertainties and other factors
may cause the actual results or performance to materially differ from any
future results or performance expressed or implied by the forward-looking
information. Such factors include, among others, the ability of the Company to
satisfy any interest payments, which may be affected by such factors as
general business, economic, competitive, political and social uncertainties;
the actual results of current geothermal, solar and hydro energy production,
development and/or exploration activities and the accuracy of probability
simulations prepared to predict prospective geothermal resources; changes in
project parameters as plans continue to be refined; possible variations of
production rates; failure of plant, equipment or processes to operate as
anticipated; accidents, labour disputes and other risks of the geothermal and
hydro power industries; political instability or insurrection or war; labour
force availability and turnover; delays in obtaining governmental approvals or
in the completion of development or construction activities, or in the
commencement of operations; the ability of the Company to continue as a going
concern and general economic conditions, as well as those factors discussed in
the section entitled "Risk Factors" in the Company's Annual Information Form.
These factors should be considered carefully and readers of this press release
should not place undue reliance on forward-looking information.

Although the forward-looking information contained in this press release is
based upon what management believes to be reasonable assumptions, there can be
no assurance that such forward-looking information will prove to be accurate,
as actual results and future events could differ materially from those
anticipated in such information. Accordingly, readers should not place undue
reliance on forward-looking information. The information in this press
release, including such forward-looking information, is made as of the date of
this press release and, other than as required by applicable securities laws,
Polaris assumes no obligation to update or revise such information to reflect
new events or circumstances.

SOURCE: Polaris Renewable Energy Inc.

 

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