Otis Singleton
Puerto Rico's electricity infrastructure has been impacted by hurricanes, blackouts, and financial woes, with the island facing challenges in restoring power to its residents. In 2017, Hurricanes Irma and Maria caused significant damage to the electricity grid, leading to one of the longest blackouts in US history. The Federal Emergency Management Agency (FEMA) and the Department of Housing and Urban Development (HUD) are key players in providing funding for grid recovery, while the Department of Energy (DOE) offers technical assistance. Private companies like Luma Energy are also involved in overseeing power transmission and distribution. Additionally, Puerto Rico aims to transition to renewable energy sources, with a goal of meeting 100% of its electricity needs through renewables by 2050. However, recent events, such as a dispute with a key energy supplier and a New Year's Eve blackout, highlight the ongoing challenges in ensuring a stable and reliable power supply for the island.
| Characteristics | Values |
|---|---|
| Organizations involved in repairing Puerto Rico's electricity | The U.S. Department of Energy (DOE), Pacific Northwest National Laboratory (PNNL), Sandia National Laboratories (SNL), Central Office for Recovery, Reconstruction and Resilience (COR3), Puerto Rico Electric Power Authority (PREPA), LUMA Energy (LUMA), Federal Emergency Management Agency (FEMA), Department of Housing and Urban Development (HUD) |
| Cause of damage | Hurricanes Irma and Maria in 2017 |
| Time taken to restore power | 11 months |
| Current status of electricity supply | Power has been restored to nearly all electrical customers across Puerto Rico as of January 2025, but there are still concerns about persistent electricity problems and interruptions |
| Future goals | Puerto Rico has set a goal to meet 100% of its electricity needs with renewable energy by 2050 |
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What You'll Learn
- The U.S. Department of Energy's role in Puerto Rico's energy recovery
- The Energy Bureau approves an electricity rate hike
- New Fortress Energy halts energy supply over unpaid bills
- The Federal Emergency Management Agency's (FEMA) funding for grid recovery
- The Puerto Rico Energy Public Policy Act and its goals
The U.S. Department of Energy's role in Puerto Rico's energy recovery
In September 2017, Hurricanes Irma and Maria caused the collapse of most of Puerto Rico's transmission and distribution system, resulting in one of the longest blackouts in US history. This disaster highlighted the urgent need for grid modernisation and resilience on the island. In the aftermath of these hurricanes, the U.S. Department of Energy (DOE) has played a crucial role in Puerto Rico's energy recovery and modernisation efforts.
DOE's role has been multifaceted, leveraging its resources and expertise to support Puerto Rico's energy sector. Firstly, DOE has provided advanced planning and modelling capabilities to local stakeholders. This includes technical assistance in developing FEMA proposals and enhancing electrical systems. For instance, DOE helped design a renewable microgrid for the island municipalities of Vieques and Culebra. They also conduct expert reviews of projects related to floating solar, hydropower modernisation, and ocean thermal energy conversion.
Secondly, DOE serves as an unbiased convener and coordinator among federal and local decision-makers. They ensure that recovery actions are aligned with industry best practices and energy public policy. DOE also supports the development of Puerto Rico's next-generation energy sector workforce through initiatives like the Clean Energy Innovator Fellowships, which foster clean energy solutions. Additionally, DOE has compiled a virtual newsletter with updates on milestones, progress, and highlights of recovery efforts.
Furthermore, DOE has committed to investing in Puerto Rico's energy sector. In June 2022, DOE awarded $3.6 million to 18 groups through the Inclusive Energy Innovation Prize, promoting entrepreneurship and innovation in underserved communities. DOE also supports capacity building for local public entities and federal agencies, ensuring investment decisions are based on robust data, modelling, and analysis.
DOE has also launched the Puerto Rico 100% Renewable Energy and Resilience Study (PR100), bringing together stakeholders and decision-makers to evaluate pathways to achieve Puerto Rico's goal of 100% renewable energy by 2050. This study involves collaboration with the Hispanic Federation of Puerto Rico to ensure local priorities and perspectives are considered. DOE's support extends to evaluating grid investments in transmission, distribution, and microgrids, helping to identify the most effective projects for grid resilience planning.
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The Energy Bureau approves an electricity rate hike
In 2017, Hurricanes Irma and Maria caused a collapse of most of Puerto Rico's transmission and distribution system, resulting in one of the longest blackouts in US history. The Puerto Rico Electric Power Authority (PREPA) and LUMA Energy (LUMA) have been working on the island's energy recovery, with the US Department of Energy (DOE) providing technical assistance and support.
Despite these efforts, Puerto Rico's energy grid remains unstable, with the island experiencing regular blackouts and ever-increasing electricity rates. In 2025, a key energy supplier, New Fortress Energy, halted liquefied natural gas deliveries to Puerto Rico, claiming that the island's main power utility owed approximately $12 million in unpaid bills and interest. This incident highlighted the financial struggles of Puerto Rico's energy sector, which has faced years of budget woes, hurricanes, and blackouts.
The Energy Bureau plays a crucial role in approving electricity rate hikes to ensure that utilities can cover the investments necessary to maintain and expand their systems. In recent years, utility regulators have authorized net rate increases, with state utility regulators signing off on $9.7 billion in net rate increases in 2023, a significant jump from the $4.4 billion authorized in 2022. These rate increases are intended to fund improvements to transmission and distribution lines to enhance grid resilience against severe weather events and support the transition to clean energy.
For example, the Illinois Commerce Commission authorized a $759 million rate increase to ComEd for grid infrastructure development to comply with the Illinois Climate and Equitable Jobs Act, which aims for a 100% clean energy target by 2050. Similarly, the New York Public Service Commission approved a $442 million rate increase for Consolidated Edison to bolster the electric system's resilience and meet renewable energy goals.
While rate hikes aim to facilitate necessary improvements, they also impact consumers' electricity bills. In 2023, US residential electricity bills increased by 2% each month compared to 2022, although this growth rate was slower than the inflation rate of 4.1% in the same year. The average monthly electricity bill for residential customers in the US totaled $138 in 2023, a slight increase from $135 in 2022. However, it's worth noting that electricity prices vary across different regions, with consumers in some areas paying significantly more per kilowatthour.
As the Energy Bureau approves electricity rate hikes, it is essential to balance the need for grid improvements and clean energy transitions with the financial burden placed on residents, especially in regions with already high electricity prices.
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New Fortress Energy halts energy supply over unpaid bills
In 2017, Hurricanes Irma and Maria caused the collapse of most of Puerto Rico's transmission and distribution system, leading to one of the longest blackouts in US history. Since then, the US Department of Energy (DOE) has been working to provide support to Puerto Rico's energy system stakeholders, helping to plan and operate the electric system with greater resilience.
However, in July 2025, New Fortress Energy (NFE), a key energy supplier to Puerto Rico, halted its liquefied natural gas deliveries to the island, claiming that the Puerto Rico Electric Power Authority (PREPA) owes the company over $12 million in unpaid bills and interest dating back to 2020. NFE CEO Wes Edens stated that the company's contract allows it to pause shipments until it receives payment, and that NFE had made its intentions clear to PREPA in a letter dated June 16, 2025.
Puerto Rico's energy chief, Josue Colon, disputes the claim, arguing that they cannot confirm the total amount owed. The standoff has brought attention to the financial difficulties that Puerto Rico's main utility faces as it continues to recover from the hurricanes and deal with ongoing budget issues. It also highlights the reliance of the island on "dirty fossil fuels", despite promises by the Biden-Harris administration to stabilise Puerto Rico's power grid with the deployment of solar panels.
The situation has resulted in a strain on Puerto Rico's power grid, with an increased demand for power during the summer heat. It remains to be seen how the dispute will be resolved and what the long-term implications will be for the island's energy supply and ongoing recovery efforts.
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The Federal Emergency Management Agency's (FEMA) funding for grid recovery
In 2017, Hurricanes Irma and Maria caused the collapse of most of Puerto Rico's transmission and distribution system, resulting in one of the longest blackouts in US history. The island has faced challenges in stabilizing its power grid ever since. The Biden-Harris administration has pledged to deploy thousands of solar panels to stabilize Puerto Rico's power grid, but these efforts have faced setbacks and criticism due to inefficiencies and financial disputes.
The Federal Emergency Management Agency (FEMA) has played a crucial role in funding Puerto Rico's grid recovery. FEMA has approved significant funding for the reconstruction of the island's power grid. In 2022, FEMA approved nearly $600 million for the purchase of materials and equipment needed to rebuild the power grid. This funding is intended to address the short supply of resources and facilitate the advancement of reconstruction work.
Additionally, FEMA has provided over $12.8 billion to the Puerto Rico Electric Power Authority (PREPA) for permanent and emergency work to repair the damage caused by Hurricane Maria and the 2020 earthquakes. Of this amount, $9.4 billion was awarded through FEMA's Accelerated Awards Strategy (FAAST). FEMA has also allocated nearly $55.3 million for the second reconstruction phase of the Costa Sur Power Plant in Guayanilla, as part of its total obligation of about $9.5 billion for grid restoration.
FEMA is also collaborating with the Government of Puerto Rico and the Department of Energy (DOE) on the Puerto Rico Grid Resilience and Transition to 100% Renewable Energy Study (PR100). This two-year study, launched in February 2022, aims to inform infrastructure investments that will provide Puerto Rico with clean, reliable, and affordable power. FEMA's investment in PR100 demonstrates its commitment to building resilient infrastructure and supporting Puerto Rico in achieving its renewable energy targets.
The DOE has provided technical assistance to PREPA, the Central Office for Recovery, Reconstruction and Resilience (COR3), and LUMA Energy in developing project applications for FEMA's Hazard Mitigation Grant Program. The DOE has also supported Puerto Rico's energy recovery by leveraging its network of National Laboratories to provide advanced planning and modeling capabilities to local stakeholders.
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The Puerto Rico Energy Public Policy Act and its goals
In 2017, Hurricanes Irma and Maria caused the collapse of most of Puerto Rico's transmission and distribution system, resulting in one of the longest blackouts in US history. In the aftermath of these hurricanes, the US Department of Energy (DOE) and its national laboratories have been actively involved in Puerto Rico's energy recovery. The DOE has provided technical assistance, tools, training, and modelling support to enhance the resilience of the electric system.
The Puerto Rico Energy Public Policy Act (Act 17), passed in 2019, plays a pivotal role in reforming the territory's energy sector. The Act has several key goals and provisions:
- Ending the monopoly of the Puerto Rico Electric Power Authority (PREPA): The Act prohibits PREPA from having exclusive rights to produce, transmit, distribute, and commercialize electric energy in Puerto Rico. It promotes competition and the integration of prosumers (consumers who generate their own energy and can share excess energy with others).
- Promoting renewable energy: The Act sets ambitious targets for Puerto Rico to meet its electricity needs with 100% renewable energy by 2050. Interim goals include achieving 40% renewable energy by 2025 and 60% by 2040, along with a phase-out of coal-fired generation by 2028.
- Energy efficiency: The Act aims for a 30% improvement in energy efficiency by 2040.
- Energy storage: The Puerto Rico Energy Bureau is tasked with studying and establishing energy storage goals to integrate renewable energy into the grid, ensuring compliance with the Renewable Portfolio Standard.
- Transparency and information disclosure: PREPA is required to disclose various types of information to its clients, including electric infrastructure details, contracts, financial data, and cost breakdowns.
- Performance-based penalties: The Act enables the imposition of penalties on electric service companies based on their performance, encouraging better service and adherence to guidelines.
- Demand response programs: The Puerto Rico Energy Bureau is directed to provide guidance for electric service companies to establish demand response or demand-side management programs within a specified timeframe.
- Universal access and fairness: The Act establishes principles of universal access to electric service at fair and reasonable rates, promoting equity and non-discriminatory practices.
To support these goals, the DOE has launched the Puerto Rico Grid Resilience and Transitions to 100% Renewable Energy Study (PR100). This two-year study involves comprehensive analyses of pathways to achieve Puerto Rico's renewable energy targets and ensure a resilient and sustainable energy future.
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Frequently asked questions
The U.S. Department of Energy (DOE) is responsible for providing technical assistance to local and federal entities to support grid recovery efforts. The Federal Emergency Management Agency (FEMA) and the Department of Housing and Urban Development (HUD) are the primary federal funding sources for grid recovery.
Puerto Rico's electricity infrastructure is still recovering from the damage caused by Hurricanes Irma and Maria in 2017, which resulted in one of the longest blackouts in U.S. history. The island continues to experience regular blackouts and has faced financial troubles with its main utility company.
The Puerto Rico legislature passed the Puerto Rico Energy Public Policy Act (Act 17) in 2019, setting a goal of meeting 100% of its electricity needs with renewable energy by 2050. The U.S. Department of Energy has also provided tools, training, and modelling support to increase the resilience of the electric system.
