State Economy
The Commonwealth of Puerto Rico is an island in the northeast Caribbean Sea, that is an unincorporated island territory of the United States of America. Puerto Rico, known as the Island of Enchantment, is approximately 1,000 miles southeast of Miami, Florida. The population of Puerto Rico is approximately 2.65 million people[1].
In 2022, Puerto Rico’s economy was ranked 41st of the 53 states and territories in the United States in gross domestic product (GDP). The territory’s’ economy is dependent on the export[2] of medicaments, vaccines, toxins, orthopedic appliances, sulfonamides, and medical instruments.
Environmental Policies
In 2016, the United States, including territories like Puerto Rico and American Samoa signed the Paris Climate Agreement[3], committing to a 26% domestic reduction in greenhouse gases by 2025, compared to 2005.
In 2017, President Donald Trump announced that the U.S. would cease all participation in the Paris Climate Agreement. The United States formerly withdrew from the Paris Agreement on November 4, 2020.
In 2019, Puerto Rico’s government mandated that the Puerto Rico Electric Power Authority generate 40% of all its electricity from renewable resources by 2025, 60% by 2040, and 100% by 2050.
In 2021, President Joe Biden announced that the U.S. would officially rejoin the Paris Climate Agreement. The United States formerly rejoined the Paris Agreement on February 19, 2021.
Power Generation Capabilities
In 2021, 100% of the people in Puerto Rico had access to electricity[4]. In 2022, the Puerto Rico Electric Power Authority used natural gas (43%), refined petroleum (37 %), coal (17%), and renewable energy (3%) to generate electricity in Puerto Rico[5]. Solar and wind are the dominant types of renewable energy used to generate electricity in Puerto Rico.
In December 2022, the average price for residential electricity in Puerto Rico[6] was 25,75¢ per kWh, compared to the average price for residential electricity in the United States of 14.96¢ per kWh.
Renewable energy developments in Puerto Rico include:
- 146 MW Solar Project – Canadian development company, Greenbriar Capital is continuing work on the Montalva Photovoltaic Solar project at a site approximately 75 miles southwest of the capital, San Juan. The project is forecast to be commissioned by year-end 2023.
- 2 MW Wind Project – In November 2012, California renewable energy company, Pattern Energy Group commissioned the Santa Isabel Wind project at a site approximately 30 miles southwest of San Juan.
- 27 MW Solar Project – In September 2013, Puerto Rican renewable energy company, Coqui Power commissioned the San Fermin Solar project at a site approximately 5 miles east of San Juan.
- 5 MW Solar + 1.1 MW Energy Storage – Italian utility Enel and Irish power company Eaton are continuing work on a solar plus energy storage system at a site approximately 30 miles west of San Juan. The project is forecast to be commissioned by year-end 2023.
Conclusions
Puerto Rico imports all fossil fuels (coal, oil, and natural gas) for power generation and transportation. In 2022, Puerto Rico[7] imported U.S. $1.79 Billion for refined petroleum for motor vehicles and U.S. $1.06 Billion for light petroleum distillates.
On 24 February 2022, Russia invaded Ukraine, prompting the European Union, United Kingdom, United States, Canada, Japan, South Korea, Australia, and New Zealand to place economic sanctions on Russian imports and exports. As a result, the crude oil and natural gas prices increased by over 50% from May 2021 to May 2022.
In September 2022 Hurricane Fiona hit Puerto Rico, causing flooding and wide spread power outages. The hurricane demonstrated the importance of solar power and energy storage systems.
Puerto Rico has significant undeveloped renewable energy resources including onshore wind, solar, offshore wind, and biomass. However, the devastation from major storms and hurricanes has limited the commonwealth’s ability to fund the development of new renewable energy projects.
It is highly unlikely that the Puerto Rico Electric Power Authority will be able to meet the government’s’ mandate of generating 40% of the territory’s electricity from renewable energy by 2025. The Island of Enchantment continues to struggle to kick the expensive fossil fuel habit.
Jack Kerfoot
Website “Our Energy Conundrum”
www.jackkerfoot.com
Jack Kerfoot is a scientist, energy expert, and author of the book FUELING AMERICA, An Insider’s Journey and articles for The Hill, one of the largest independent political news sites in the United States. He has been interviewed on over 100 radio, podcast, and television stations from New York City to Los Angeles discussing a diverse range of energy issues and topics.
[1] Commonwealth of Puerto Rico Population (2023) – April 17, 2023, www.worldometers.info
[2] The Observatory of Economic Complexity – Puerto Rico Imports
[3] Carbon Brief “Paris 2015: Tracking Country Climate Pledges”
[4] The World Bank Group, Access to Electricity (% of Population – Puerto Rico
[5] U.S. Energy Information Agency – Puerto Rico Territory Profile and Energy Estimates
[6] U.S. Energy Information Agency – Puerto Rico Territory Profile and Energy Estimates
[7] The Observatory of Economic Complexity (OEC) – Puerto Rico Imports