As officials push to extend coal and delay renewables, communities fight for a just transition. This month, we examine the political battles shaping Puerto Rico’s energy development, from debt crises to grid overhauls. Who really holds the power?
(Generated by Jillian Melero with Dall-E Feb. 24, 2025.)
A federal funding freeze threatens key projects, while Gov. Jenniffer González’s push to extend coal use raises concerns about sustainability and public health.
At the same time, PREPA’s $9 billion debt crisis stalls investment, even as Luma Energy plans to add 990MW of renewables and 700MW of energy storage.
Meanwhile, powerful fossil fuel interests are doubling down on efforts to block clean energy policies.
With so much at stake, the question isn’t just about keeping the lights on — it’s about who controls Puerto Rico’s energy transition.
In This Issue
Federal Funding Freeze Sparks Concerns
📌 What Happened?
The Trump administration recently issued a directive to pause all federal grants and loans, triggering uncertainty for programs nationwide. The freeze impacted environmental, climate, and public health funding — areas critical to Puerto Rico’s ongoing recovery and infrastructure development. (Associated Press)
⚡ Why It Matters for Puerto Rico
Puerto Rico heavily relies on federal funds for disaster recovery and infrastructure projects.
Past funding delays — such as the extra federal oversight on HUD recovery grants — have already slowed Puerto Rico’s rebuilding efforts.
The freeze could stall renewable energy projects and modernization plans necessary for a resilient power grid.
⚖️ Legal and Political Fallout
Federal judges temporarily blocked the freeze, citing constitutional concerns.
Some agencies reportedly continued withholding funds, adding to confusion.
While the White House rescinded the freeze, it remains unclear how Puerto Rico’s projects will be affected.
🔎 What to Watch
Will federal agencies resume funding Puerto Rico’s recovery efforts?
How will this impact ongoing energy and infrastructure investments?
What legal challenges could arise if funds remain delayed?
You Ask, We Answer
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Oil Execs, Trump Allies at ARC
Oil and gas executives, conservative politicians, and far-right influencers gathered at the Alliance for Responsible Citizenship (ARC) conference in London — an event organized by Jordan Peterson. (DeSmog)
🔎 What to Know
Who was there? Executives from major fossil fuel companies, U.S. House Republican Speaker Mike Johnson, UK Conservative leader Kemi Badenoch, and former presidential candidate Vivek Ramaswamy.
What was discussed? Panels featured climate change skeptics and discussions promoting fossil fuel interests.
Why does it matter? The event signals growing coordination between oil industry leaders, tech billionaires, and right-wing politicians against global climate policies.
💡 What this means for Puerto Rico
As fossil fuel interests align with political power, expect more pushback against renewable energy policies. Puerto Rico’s transition to solar, wind, and resilient microgrids will require stronger advocacy and investment in energy independence.
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Governor Moves to Scrap Renewable Goals
📌 What’s Happening?
Puerto Rico’s Gov. Jenniffer González has proposed eliminating renewable energy goals and extending the life of the island’s only coal-fired power plant. (Associated Press)
🔎 What to Know
A new bill would remove renewable energy mandates and keep the Guayama coal plant running past 2027.
Environmentalists & health experts warn of increased pollution and health risks if coal use continues.
The coal plant supplies 20% of Puerto Rico’s electricity (454 MW annually), and officials claim shutting it down without a replacement plan risks power shortages.
Power outages in Puerto Rico increased by 11% last year, underscoring ongoing grid instability.
The governor signed a $767M deal with Tesla for energy storage —yet is moving away from renewables.
If Puerto Rico set renewable energy targets in 2019, why hasn’t a transition plan for the coal plant been developed?
💡 Why It Matters
This fight isn’t just about power — it’s about public health, sustainability, and political priorities.
📢 What’s Your Take?
How can Puerto Rico cover the gap between current generation and renewable energy goals?
📩 Reply to this email and let us know your thoughts!
Our Previous Reporting
ICYMI: Before we launched Connect Puerto Rico on beehiiv in September, we ran a prelaunch series on Medium from January through August. In these posts, we explored the key stories and issues shaping Puerto Rico’s transition to renewable energy.
If you haven’t already, take a look here and catch up on our reporting so far. Let us know your thoughts — we’d love to hear from you!
PREPA Debt & Bankruptcy
📌 What’s Happening?
The Puerto Rico Electric Power Authority (PREPA), Puerto Rico’s bankrupt power company, is at the center of a high-stakes financial battle. (Associated Press)
🔎 What to Know:
PREPA owes $9 billion, but the federal control board says it can only afford to pay $2.6 billion, an 80% cut.
Bondholders demand $8.5 billion, rejecting the plan as unacceptable.
The board rejected a rate increase to restructure the debt, meanwhile, PREPA’s projected expenses continue to rise.
The unresolved case is scaring off investors and slowing Puerto Rico’s economic growth.
Puerto Rico’s power system remains fragile, with chronic outages persisting since Hurricane Maria in 2017.
Luma Energy estimates the grid needs $25 billion in federal funds by 2034, but FEMA has only disbursed $3.2 billion of the expected $17 billion.
PREPA’s $9 billion debt is Puerto Rico’s last unresolved liability from its 2015 financial crisis. Mediation is ongoing, but the outcome will impact energy reliability, affordability, and future investment.
💡 Why It Matters
Puerto Rico’s energy crisis isn’t just about infrastructure — it’s about debt, financial control, and the future of affordable electricity.
📢 What’s Your Take?
Should the government allow private companies to take a larger role in Puerto Rico’s energy system, or should it stay in public hands?
📩 Reply to this email and share your thoughts!
Keep Us Honest!
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Please email us at [email protected] with any corrections or concerns under the subject line “Fact Check” and we’ll review them promptly. Thank you for helping us keep this platform reliable and trustworthy!
Luma Energy to Add 990 MW of Renewables & 700 MW Storage
📌 What’s Happening?
Luma Energy, the US-Canadian joint venture managing Puerto Rico's electricity distribution, has announced plans to construct nine energy interconnection points. These projects, in collaboration with Linxon US LLC and AtkinsRéalis Caribe, aim to integrate renewable energy sources into the island's grid. (Energy Storage News)
🔎 What to Know
The nine interconnection points are set to add over 990 MW of clean energy and more than 700 MW of energy storage to Puerto Rico's electric grid.
990 MW represents approximately 34.5% of Puerto Rico's peak electricity demand.
In 2024, Puerto Rico's electrical system experienced over 100 load-shed events, where electricity demand exceeded supply, leading to power outages.
These developments support Puerto Rico's Integrated Resource Plan, which targets 100% renewable energy by 2050 and a 30% increase in energy efficiency by 2040.
In May 2024, regulators approved Luma's deployment of a 360MW Battery Energy Storage System (BESS) to enhance grid reliability.
💡 Why It Matters
Integrating substantial renewable energy and storage capacities is crucial for Puerto Rico's transition to a sustainable and resilient energy system, reducing dependence on fossil fuels and improving grid stability.
📢 What’s Your Take?
How can LUMA engage with local communities, local and federal policymakers, business owners to develop and support these renewable energy initiatives?
📩 Reply to this email and share your thoughts!
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