Otis Singleton
Puerto Rico's electricity sector has been plagued by underinvestment, poor financial oversight, and natural disasters. The island's power supply is heavily dependent on fossil fuels, with petroleum products accounting for three-fifths of its total energy consumption. In recent years, hurricanes and earthquakes have caused widespread blackouts and infrastructure damage, highlighting the vulnerability of the electrical grid. To address these challenges, the Puerto Rico legislature passed the Puerto Rico Energy Public Policy Act in 2019, aiming for a renewable energy target of 100% by 2050. Private companies like LUMA Energy have also been engaged to improve the grid's resilience and reliability. Despite these efforts, power outages continue to occur, underscoring the ongoing challenges in ensuring a stable electricity supply in Puerto Rico.
| Characteristics | Values |
|---|---|
| Electricity Generation | Fossil fuel-fired power plants generate most of Puerto Rico's electricity. |
| Primary Energy Source | Petroleum products account for about three-fifths of Puerto Rico's total energy consumption. |
| Petroleum | 62% |
| Natural Gas | 24% |
| Coal | 8% |
| Renewables | 7% |
| Electricity Provider | The Puerto Rico Electric Power Authority (PREPA) is responsible for electricity generation, distribution, and transmission. |
| Recent Blackouts | December 2024, September 2022, September 2021, September 2017 |
| Natural Disasters Affecting Electricity Infrastructure | Hurricanes Irma and Maria (2017), Hurricane Fiona (2022), Hurricanes Ernesto and Oscar (2024) |
| Legislative Goals | The Puerto Rico Energy Public Policy Act (2019) aims for 100% renewable energy by 2050, with interim targets of 40% by 2025 and 60% by 2040. |
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What You'll Learn
The Puerto Rico Electric Power Authority (PREPA)
The authority was originally named the Puerto Rico Water Resources Authority (PRWRA) and was established during the governorship of Rexford G. Tugwell. Government-owned, PRWRA unified diverse regional and local electric power companies into one unified electric grid. Over the years, the budget for maintenance has diminished, and PREPA has suffered several outages that have left regions or the entire island without power. For example, in August 2012, 14,000 residents were left without power following Tropical Storm Isaac. Another island-wide outage occurred on September 20, 2016, due to a fire at a PREPA facility known as Central Aguirre, leaving all of Puerto Rico without power for three days.
In September 2017, Hurricane Irma left 1 million residents without power, and just days later, Hurricane Maria struck, causing a blackout across the entire island. PREPA's distribution network was destroyed, and two weeks later, power had been restored to about 10% of customers. PREPA has also faced criticism for its handling of capital improvement projects from 2010 to 2018, with an audit finding that the company engaged in wasteful spending and did not adhere to applicable laws and regulations.
In recent years, there has been a push to privatize PREPA and address its mounting debt, which has exceeded $9 billion. In 2020, PREPA selected LUMA Energy, LLC to operate, maintain, and modernize its electricity transmission and distribution system for fifteen years through a public-private partnership. Despite these changes, widespread dissatisfaction with the energy system in Puerto Rico continues, with much of the public criticism targeting infrastructure that remains under PREPA's control.
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Fossil fuels and renewable energy sources
Puerto Rico's electricity sector has historically been vulnerable to underinvestment, poor financial oversight, and natural disasters. The island has suffered from hurricanes and storms that have devastated its electricity infrastructure, causing long-term blackouts and leaving residents without power for extended periods. In recent years, hurricanes such as Irma, Maria, and Fiona, have caused significant damage to the electrical grid and generating facilities. These events have highlighted the need for a more resilient and sustainable energy infrastructure in Puerto Rico.
Fossil fuels have been the primary source of electricity generation in Puerto Rico. In 2024, petroleum-fired power plants provided 62% of the island's electricity, followed by natural gas at 24%, and coal at 8%. The territory has no proven reserves or production of fossil fuels and relies heavily on imports to meet its energy demands. This has resulted in higher average electricity prices than most U.S. states. Additionally, the aging infrastructure of power plants and substations has led to frequent equipment failures and outages.
However, Puerto Rico has set ambitious goals to transition to renewable energy sources. The Puerto Rico Energy Public Policy Act (Act 17) aims for the territory to meet 100% of its electricity needs with renewable energy by 2050. Interim targets have been set at 40% by 2025 and 60% by 2040. To achieve these goals, the island plans to phase out coal-fired generation by 2028 and improve energy efficiency by 30% by 2040.
Puerto Rico possesses some renewable energy resources, including solar, wind, hydropower, and biomass. The U.S. Department of Energy (DOE) has been actively supporting Puerto Rico's energy recovery by providing tools, training, and modeling support to enhance the resilience of the electric system. The DOE has also assisted in developing renewable microgrids for some island municipalities and reviewing projects related to floating solar, hydropower modernization, and ocean thermal energy conversion. Private entities, such as LUMA Energy, have been selected to operate and upgrade the electricity transmission and distribution system, with a focus on reducing power interruptions and improving reliability.
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Hurricanes and natural disasters
Puerto Rico has a history of problems with its electricity supply, which is largely generated by fossil fuel-fired power plants. The island has experienced several natural disasters, including hurricanes and tropical storms, that have caused extensive damage to its electrical infrastructure.
In September 2017, Hurricanes Irma and Maria caused the collapse of most of the transmission and distribution systems in Puerto Rico, leading to one of the longest blackouts in US history. The hurricanes left residents in some parts of the territory without electricity for almost a year, with power restored to only about 10% of customers two weeks after the hurricanes struck. The storms also severely disrupted the island's communication, water and wastewater, transportation, healthcare, and critical manufacturing sectors, with many of these issues being exacerbated by the underlying instability of the electrical grid.
In the aftermath of the hurricanes, the Puerto Rico Electric Power Authority (PREPA) faced significant challenges due to long-term deterioration and underinvestment in its electrical infrastructure. PREPA, which is responsible for electricity generation, power distribution, and transmission on the island, has also been impacted by frequent leadership changes and corruption scandals. The authority accumulated over $9 billion in debt, with a federal oversight board stating that it would be impossible for Puerto Rico to repay the $8.5 billion requested by bondholders.
To address these issues, the Puerto Rico legislature passed the Puerto Rico Energy Public Policy Act (Act 17) in 2019, setting a goal for the territory to meet 100% of its electricity needs with renewable energy by 2050. The Act includes interim targets of 40% by 2025, 60% by 2040, and a 30% improvement in energy efficiency by 2040. The US Department of Energy (DOE) has also provided technical assistance to PREPA and other organizations in developing project applications for FEMA's Hazard Mitigation Grant Program, which aims to protect undamaged facilities and prevent future disaster-related damages.
Despite these efforts, Puerto Rico continues to experience periodic blackouts and power grid problems. In April 2025, the island suffered another massive blackout, leaving 1.4 million customers without power and causing significant disruptions to transportation, businesses, and essential services.
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Power outages and blackouts
Puerto Rico has a history of problems with its electricity supply, with several power outages leaving regions or the entire island without power. The island relies heavily on fossil fuel-fired power plants to generate most of its electricity, and its electrical infrastructure has experienced long-term deterioration due to decades of underinvestment and insufficient maintenance.
One notable outage occurred in September 2017, when Hurricane Irma caused power outages for 1 million residents. Shortly after, Hurricane Maria struck, leaving nearly the entire island without power. It took two weeks for power to be restored to about 10% of customers, and three months for 55% of residents to have their power back.
In April 2025, a massive blackout left all of Puerto Rico without power, affecting 1.4 million customers and causing gridlock on the roads. A preliminary review suggested that the cause was an issue with a transmission line. This was the second massive outage since New Year's Eve, when a blackout affected 90% of clients.
Other notable power outages include:
- August 2012: Tropical Storm Isaac left 14,000 residents without power.
- September 2016: A fire at a PREPA facility known as Central Aguirre caused an island-wide outage that lasted three days.
- April 2025: An excavator repairing damage from Hurricane Maria hit a line connecting two major power plants, causing a blackout across the island.
- June 2025: A fire at a transformer substation in Monacillos interrupted power to 400,000 customers.
- September 2021: Mechanical and maintenance problems affected various power plants, resulting in four days of consecutive rolling blackouts.
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Privatisation of PREPA
Puerto Rico's electricity is mostly generated through fossil fuel-fired power plants, with petroleum products accounting for three-fifths of the island's total energy consumption. The Puerto Rico Electric Power Authority (PREPA) is responsible for electricity generation, power distribution, and transmission on the island.
The privatisation of PREPA has been a topic of discussion and a goal since 2018, when Governor Ricardo Rosselló signed into law the approved legislation to allow parts of the Puerto Rico Electric Power Authority to be sold to private entities. This decision came nine months after Hurricane Maria, which flattened the island's power grid. Rosselló described the objective of privatisation as providing "better service, one that's more efficient and that allows us to jump into new energy models".
The privatisation of PREPA is not without its challenges and controversies. One of the main issues is the labour problem, which is not due to labour costs but rather the political mismanagement of PREPA. There has been widespread mismanagement within PREPA, with a constant turnover of management serving political ends, creating chaos and inefficiency. Additionally, there are concerns about honouring existing collective bargaining agreements with labour unions under new private ownership. PREPA's workforce supports approximately 6,000 households, and the utility is a major source of jobs on the island.
Another challenge is PREPA's $9 billion debt. The agency must significantly lower its annual debt payments if it is to survive financially. There have been attempts to address this issue, with PREPA intending to save $500 million in fuel costs by utilising natural gas and renewable energy. However, the territory declared its public debt unpayable in 2015 and officially filed for bankruptcy in 2017, hindering economic development and investment.
Furthermore, there have been corruption scandals and frequent leadership changes within PREPA, further complicating the privatisation process. Despite these challenges, some progress has been made, with Puerto Rico's Senate and House of Representatives finalising an energy policy bill that amends the existing privatisation plan. However, concerns remain about the potential impact on unionised workers and the economy, as well as the degree of influence held by Governor Rossello over the utility, even after privatisation.
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Frequently asked questions
Fossil fuel-fired power plants generate most of Puerto Rico's electricity. In 2024, petroleum-fired power plants provided 62% of the country's electricity, with natural gas (24%) and coal (8%) also contributing.
PREPA is an electric power company owned by the Commonwealth of Puerto Rico. It is responsible for electricity generation, power distribution, and transmission on the island. PREPA has suffered from underinvestment, poor financial oversight, and natural disasters, including hurricanes and earthquakes.
The US Department of Energy (DOE) has provided technical assistance and support to Puerto Rico's energy sector to help plan and operate the electric system more resiliently. They have also helped develop project applications for FEMA's Hazard Mitigation Grant Program to protect against future disasters.
