Puerto Rico’s Solar Expansion Faces Challenges Amid Efforts To Bolster Renewable Energy – Report

Puerto Rico residents and businesses have rapidly adopted rooftop solar and storage systems to boost resilience against an unreliable power grid. The latest report from the Institute for Energy Economics and Financial Analysis (IEEFA) highlights this positive trend amid a troubled overall shift to renewable energy.

The IEEFA report points out that Puerto Rico’s renewable energy transition faces significant challenges, notably from the Financial Oversight and Management Board’s (FOMB) attempts to curb rooftop solar expansion and New Fortress Energy’s push to increase natural gas supply. Genera PR, a subsidiary of New Fortress Energy, now operates most of Puerto Rico’s power plants, potentially steering the island away from its renewable energy goals.

“Almost seven years after Hurricane Maria, Puerto Rico’s grid remains antiquated and unable to provide reliable service. The blackouts Puerto Rico is experiencing are another example of why rooftop solar is so critical for providing resiliency to households,” said Tom Sanzillo, IEEFA director of financial analysis and author of the report. He noted that thousands of households and businesses have installed solar energy with battery backup independently, underscoring their lack of confidence in the current electrical system management.

Renewable energy now accounts for 9% of Puerto Rico’s power generation, up from 2-3% before Hurricane Maria in 2017, driven largely by individual solar installations.

There is broad support among stakeholders for the shift to renewable energy:

• The FOMB has acknowledged the importance of renewables to mitigate fossil fuel price volatility.
• In 2020, the Puerto Rico Energy Bureau approved a plan emphasizing rapid solar and storage expansion.
• The Puerto Rico Legislature, supported by several governors, has consistently backed solar energy expansion, as outlined in Law 17-2019.

Despite this consensus, the FOMB has recently challenged a Puerto Rico law extending net metering until 2030, threatening legal action if it is not repealed. This policy compensates solar owners at the retail rate for energy they export to the grid.

New Fortress Energy’s influence poses another long-term threat. Its subsidiary Genera PR, which runs most of Puerto Rico’s power plants, aims to prioritize natural gas, contradicting the island’s goal of transitioning to 100% renewable energy. The IEEFA report suggests that canceling the Genera contract would be a significant step by the Puerto Rican government to reaffirm its commitment to its renewable energy policy.