Home Money & Business Business US authorities caution Puerto Rico about insufficient power production ahead of a potential Trump administration.

US authorities caution Puerto Rico about insufficient power production ahead of a potential Trump administration.

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SAN JUAN, Puerto Rico — During her visit to Puerto Rico, U.S. Energy Secretary Jennifer Granholm emphasized the urgent need for enhanced power generation as the territory grapples with the aftermath of a significant blackout. This visit comes as concerns grow over the potential resources and funding that may become available to Puerto Rico’s failing power grid under the leadership of President-elect Donald Trump, who has appointed a fossil fuel executive as his energy secretary.

Granholm pointed out that Puerto Rico has experienced 232 power outages since Hurricane Fiona struck the island in September 2022, attributing these disruptions to inadequate generation capabilities. Notably, she mentioned that only around half of the total installed generation capacity is currently operational, despite substantial investments by the U.S. Department of Energy in solar energy initiatives that have provided over 1,200 megawatts of new renewable energy capacity.

The sentiment towards Granholm seems mixed; while she had a cooperative relationship with former Governor Pedro Pierluisi, current Governor Jenniffer González, who was recently sworn in, declined to attend the news conference with Granholm. In a statement earlier in the week, González voiced skepticism regarding Granholm’s visit, deeming it a “photo tour” and urged her to tackle the fundamental issues affecting the power situation rather than participating in a public relations event.

In response, González appointed an energy czar focused on scrutinizing the contracts held by two private companies responsible for managing power generation, transmission, and distribution on the island. She has criticized the federal government for withholding $18 billion intended for the island’s energy grid upgrades. In a recent news conference, Granholm clarified that the Department of Energy does not oversee the funding tied to the grid project; rather, it falls under the jurisdiction of FEMA.

Granholm revealed that $6 billion in federal funds have already been earmarked for rebuilding the grid, which was devastated by Hurricane Maria in September 2017. Out of over 440 projects submitted to FEMA for repairs and enhancements, 200 have been given the green light, with 125 currently under construction. However, ongoing challenges continue to plague the grid, with frequent outages reported.

A widespread blackout occurred on December 31, impacting nearly the entire island, which has a population of 3.2 million, as residents prepared for New Year celebrations. As of Friday, over 1,200 customers were still without power, some awaiting improvements to the electrical system. Javier Rúa Jovet, who serves as the public policy director for Puerto Rico’s Solar and Energy Storage Association, highlighted the historical support that the Department of Energy has provided for renewable energy initiatives under Granholm. Yet, he expressed concerns regarding the future of the power grid as the Trump administration takes office.

“The sustainability of solar initiatives hinges on a reliable grid,” he stated, pointing out that the successful reconstruction of Puerto Rico’s grid largely relies on the timely disbursement of FEMA funds. He added that delays in investment could jeopardize these efforts, especially with a new federal administration potentially shifting its focus toward other financial priorities such as tax breaks for the affluent.

Trump’s recent selection of Chris Wright, a campaign contributor and fossil fuel industry executive, as energy secretary raises further anxiety as Puerto Rico seeks to reduce its reliance on oil and transition toward renewable energy sources. Currently, fossil fuel power plants account for 93% of the island’s energy production, with natural gas constituting 23%, coal 8%, and renewables merely 6%.

A public policy act enacted in 2019 establishes ambitious renewable energy targets for Puerto Rico, mandating that 40% of its electricity be sourced from renewables by 2025, 60% by 2040, and achieving a 100% renewable energy supply by 2050. Granholm affirmed the importance of this law, stating, “Puerto Rico has a law. I expect that law to be adhered to.”