The Energy Transition in Puerto Rico

Puerto Rico’s energy transition is driven by urgent needs to reduce fossil fuel dependence, enhance grid resilience, and improve energy security, particularly following the devastation caused by Hurricanes Irma and Maria in 2017. The island’s energy mix remains heavily reliant on imported petroleum and natural gas, though ambitious policy frameworks, including the Puerto Rico Energy Public Policy Act (Act 17-2019), set targets for 100% renewable electricity generation by 2050. The plan prioritises solar PV, battery storage, distributed generation, and microgrids, with a near-term goal of achieving 40% renewables by 2025. The Puerto Rico Electric Power Authority (PREPA) oversees energy generation and distribution, alongside growing participation from independent power producers and community energy projects. Puerto Rico does not possess domestic production of critical minerals and remains fully reliant on imports for key materials such as lithium, cobalt, nickel, and rare earth elements, which are vital for renewable technologies and energy storage systems. Major challenges include grid instability, financing gaps, hurricane risks, and complex regulatory processes. However, the island’s policy ambition, access to U.S. federal funding, and emerging decentralised energy solutions position Puerto Rico to lead on energy resilience, innovation, and long-term decarbonisation within the Caribbean region.