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LATIN AMERICA ADVISOR

Energy ADVISOR

A daily publication Of the dialogue

January 17, 2025

What Can Puerto Rico Do to Avoid More Blackouts?

Puerto Rico’s oil-dependent power sector collapsed on New Year’s Eve. The Aguirre Power Generation Complex in Salinas municipality, which saw an interruption on Dec. 31, is pictured. // File Photo: Puerto Rican Government.

Q

  • Puerto Rico’s power grid collapsed on the morning of Dec. 31 due to a faulty transmission line, with 90 percent of utility customers losing power. Electricity was reportedly restored to nearly all customers the following day. The island’s energy sector has been beset with challenges since Hurricane Maria caused widespread damage to its power infrastructure in 2017. Puerto Rico’s electricity sector remains highly dependent on centralized fossil fuel generation, and plans to transition to 100 percent renewable power generation by 2050 have progressed slowly. What factors led to Puerto Rico’s New Year’s Eve power grid collapse? How feasible are the U.S. commonwealth’s plans to boost renewable energy capacity? How is Puerto Rico’s energy sector likely to change under the administration of U.S. President-elect Donald Trump?

A

Cathy Kunkel, energy consultant at the Institute for Energy Economics and Financial Analysis: “The New Year’s Eve blackout in Puerto Rico provides another reminder of the fragility of the island’s grid and the lack of progress made since Hurricane Maria. Even before the 2017 hurricane season, Puerto Rico’s electrical system was in bankruptcy and had experienced years of deferred maintenance that made the system especially susceptible to disaster. Today, the electrical system is in worse physical condition than it was prior to Maria. Despite legislation calling for 40 percent renewable energy by 2025 and 100 percent by 2050, the real progress in renewable energy has not come from government action, but rather…”

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A sister publication of the Inter-American Dialogue’s daily Latin America Advisor, the weekly Energy Advisor captures fresh analysis from business leaders and government officials on the most important developments in oil and gas, biofuels, the power sector, renewables, new technologies, and the policy debates shaping the future of energy in the Western Hemisphere and beyond. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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Nigel Blackaby
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Freshfields Bruckhaus Deringer

Jimena Blanco
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María José Cortés
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Jeffrey Davidow
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Analia Gonzalez
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Jonathan C. Hamilton
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Raul Herrera
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James R. Jones
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Jorge Kamine
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Craig A. Kelly
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Jeremy Martin
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Daniela Stevens
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Doris Rodríguez
Partner,
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Alexandra Valderrama
Director,
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Affairs, Chevron

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