July 8, 2020 Read More →

Almost three years after Maria, Puerto Rico grid still struggling to recover

IEEE Spectrum:

When Hurricane Maria razed Puerto Rico in September 2017, the storm laid bare the serious flaws and pervasive neglect of the island’s electricity system. Nearly all 3.4 million residents lost power for weeks, months, or longer—a disaster unto itself that affected hospitals and schools and shut down businesses and factories.

The following January, then-Gov. Ricardo Rosselló signaled plans to sell off parts of the Puerto Rico Electric Power Authority (PREPA), leaving private companies to do what the state-run utility had failed to accomplish. Rosselló, who resigned last year, said it would take about 18 months to complete the transition.

“Our objective is simple: provide better service, one that’s more efficient and that allows us to jump into new energy models,” he said that June, after signing a law to start the process.

Yet privatization to date has been slow, piecemeal, and mired in controversy. Recent efforts seem unlikely to move the U.S. territory toward a cleaner, more resilient system, power experts say.

In March 2019, New Fortress Energy won a five-year, $1.5 billion contract to supply natural gas to PREPA and convert two units (totaling 440 megawatts) at the utility’s San Juan power plant from diesel to gas. The company, founded by billionaire CEO Wes Edens, completed the project this May, nearly a year behind schedule. It also finished construction of a liquefied natural gas (LNG) import terminal in the capital city’s harbor. 

“This is another step forward in our energy transformation,” Gov. Wanda Vázquez Garced said in May during a tour of the new facilities. Converting the San Juan units “will allow for a cheaper and cleaner fuel” and reduce monthly utility costs for PREPA customers, she said.

Critics have called for canceling the project, which originated after New Fortress submitted an unsolicited proposal to PREPA in late 2017. The ensuing deal gave New Fortress an “unfair advantage,” was full of irregularities, and didn’t undergo sufficient legal review or financial oversight, according to a June report by CAMBIO, a Puerto Rico-based environmental nonprofit, and the Institute for Energy Economics and Financial Analysis.

 [Maria Gallucci]

More: The Privatization of Puerto Rico’s Power Grid Is Mired in Controversy

Posted in: IEEFA In the News

Comments are closed.