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Investing in Puerto Rico Solar with Greenbriar Capital Corp. (TSX-V: GRB)

Come with me to Puerto Rico!

Written by Jeff Siegel
Posted October 3, 2019

It’s been a long time since I visited Puerto Rico.

But I definitely have fond memories of this beautiful island — eating homemade mofongo, drinking too many mojitos, and kicking back on the beach, admiring all the talent.

But that was nearly 10 years ago.

Sadly, since then, the U.S. territory has been mangled by corruption, hurricanes, and a general sense of bureaucratic defeatism that has wreaked havoc on the good folks who call Puerto Rico home.

This is certainly the case in terms of energy, where the island continues to deal with a very high level of energy incompetence.

As reported in Utility Dive, last week, a diesel spill caused a fire that resulted in about 65,000 residents losing power. And this is in addition to continued load shedding that initiates rolling blackouts on a regular basis.

The truth is, Puerto Rico is still living with an antiquated grid that relies on operations that would never be accepted on the mainland. For instance, a couple weeks ago, operators at a 500-megawatt gas plant had to go offline after a lightning strike. This is some seriously outdated shit coupled with a hell of a lot of bureaucratic buffoonery.

But it’s not all bad news.

Caribbean Coin

The Puerto Rico Electric Power Authority (PREPA) has recently proposed an Integrated Resource Plan that will create eight mini grids in an effort to add renewable energy and smaller, more efficient traditional generation. This will result in more stability for the grid.

According to PREPA’s general director, Daniel Hernandez, the new system will use large solar photovoltaic power plants, battery storage facilities, and conventional new generation.

Although I know most folks on the mainland couldn't care less about this plan, as an investor, you should care about it very much, as it’s presenting a huge opportunity for those looking to make a few bucks off Puerto Rico’s new energy plan.

A No-Brainer

There are a number of companies now looking to take advantage of Puerto Rico’s plan to integrate more renewable energy. But only one has already begun.

The company is called Greenbriar Capital Corp. (TSX-V: GRB), and it is the developer of the Montalva Solar Farm, which is a 146-megawatt solar project in southwest Puerto Rico, in a location that has the highest solar insolation on the island and is located in an area that’s generally protected from hurricanes.

The project also already has an existing 115kV transmission line that can be connected to the Puerto Rico grid.

All the necessary environmental studies and surveys have been completed, and all the necessary funding for the project is in place. So investors don’t have to worry about the company diluting shareholders to pay for it.

The government loves it because it’s already in play, as contracts were in place before the hurricane hit. As well, the project is going to bring in more than 1,000 jobs to a location that has long been economically depressed and in desperate need of capital stimulus and jobs.

It’s a no-brainer for the politicians. And it should also be noted that the U.S. federal government is paying for about 30% of the project.

Although there will be plenty of new solar projects coming to Puerto Rico, this one is already in development, and when completed, it will be the largest solar project in the Caribbean.

Management is heavily invested in the project, too, with the company’s CEO having about $3 million in it.

With only 19 million outstanding shares, cash in hand to fund the project, and the government giving its blessing, for energy investors, this is a gift.

Accept it with gratitude.

To a new way of life and a new generation of wealth...

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Jeff Siegel

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Jeff is the founder and managing editor of Green Chip Stocks, a private investment community that capitalizes on opportunities in alternative energy, organic food markets, legal cannabis, and socially responsible investing. He has been a featured guest on Fox, CNBC, and Bloomberg Asia, and is the author of the best-selling book, Investing in Renewable Energy: Making Money on Green Chip Stocks. For more on Jeff, go to his editor's page.

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