The incoming FEMA funds will have a major voice in how they are spent because of the fact that the PREPA must put forth projects for the agency and its regulators to approve. The Queremos Sol coalition and other organizations are pushing the utility to shift its focus to renewable energy rather than rebuilding existing infrastructure.
The system has been in a state of decay for years due to poor maintenance and the 2020 earthquake, according to the director of Southeast energy for the Natural Resources Defense Council.
He said that the grid was in need of a complete replacement because it wasn't designed to handle hurricanes like the ones that will be caused by climate change. The layout with generation in the South being sent to the San Juan area in the Northeast makes it very difficult and costly to repair and maintain.
The plants that run on fuel oil or diesel still provide half of the island's power in 2020, but imports of natural gas and coal have increased. 2.5 percent was provided by hydropower and other renewables.
The Puerto Rico Energy Public Policy Act requires the PREPA to get 40 percent of its electricity from renewable resources by 2025, 60 percent by 2040 and 100 percent by the year 2050. The law requires that coal-fired generation be phased out by the year 2028.
Climate advocates say the figures are in line with Biden's goal for the country and should preclude further dependence on fossil fuels.
Puerto Rico has an opportunity to go from a system based on petroleum to a system that is state-of-the-art and can be a model for other states, according to the man. He advised against taking that intermediate step, which is to go to imported gas, which is more expensive.
Gonzlez-Coln said that the green ambitions were not feasible for the immediate future and that the island needed to take an all-of-the-above approach.
She said that the system needs to be stable and cut expenses in order to invest in renewable energy.
The problems are immediate for LUMA. According to a report in The New York Times, the company gave data to the legislature that shows that the average time for power to be out has doubled since it took over the grid in June. The highway in San Juan was closed in October because of service disruptions.
The relationship between LUMA Energy and Puerto Rican legislators has deteriorated to the point that a judge in Puerto Rico issued an arrest order for Stensby for failing to provide requested documents. The judge nullified the order after LUMA provided the documents.
The grid in Puerto Rico was in bad shape because of the deferred maintenance by the PREPA, according to the energy program manager with Cambio PR. The LUMA privatization has made things worse.
The Institute for Energy Economics and Financial Analysis published a report in August that described the issues with the LUMA Energy contract as well as damaging voltage fluctuations and poor customer service since the company took over the grid. Lack of personnel, insufficient transparency, and the absence of effective oversight were attributed to the problems.
At an October 6 hearing by the House Natural Resources Committee, Stensby blamed a union blockade for a slow start to repair work and said that PREPA is the worst performing utility in the United States.
It took two decades for PREPA to get in this state, so it is important to get started and push ahead. The company will invest $10 million in a technical training program for LUMA lineworkers after reaching an agreement with the International Brotherhood of Electrical Workers.
LUMA said it has made improvements in its first six months of managing the grid, such asUpgrading more than 1,800 power poles and dozens of critical distribution breakers to reduce the likelihood of future outages.
The company said in a statement that it is working to make the service and infrastructure improvements so that customers see fewer interruptions.
LUMA said it has connected solar panels for 12,000 customers in the last six months. In September, LUMA launched a map on its website to show customers and developers where solar projects could be accepted. The company said it is on track to eliminate a large number of solar connection requests by January.
Pushing on with fossil fuels.
The utility was authorized to begin preliminary work for a new fossil fuel-powered unit or energy storage at the Palo Seco power plant to protect against near term price fluctuations of solar photovoltaic and battery energy storage and other potential reliability concerns. Environmental justice advocates object to the project because it could cause harm to nearby communities.
With $9.4 billion in FEMA money flowing to Puerto Rico, environmental advocates are hoping that the federal government will help push the scales toward renewable power. The agency declared in August that the power grid work in Puerto Rico would not have a significant impact on the environment.
The Alliance for Renewable Energy Now asked the agency in October to reconsider the finding. FEMA was accused of ignoring instructions from Congress to direct funding away from infrastructure vulnerable to storms, failing to comply with National Environmental Policy Act mandates to consider all energy alternatives and their climate impacts, and failing to account for environmental justice.
The group wants the agency to look at battery energy storage and rooftop solar.
A FEMA spokesman said via email that it carefully reviews all requests and is evaluating one.
FEMA could put its foot down and say the funding proposals must meet the goals of the Biden administration, according to NRDC.
He said that if they say that, it will clarify how much wiggle room the utility has. They are not following the law.
A PREPA spokesman could not be reached for comment, but a FEMA spokesman said via email that FEMA has worked with the Government of Puerto Rico to maximize the flexibility of funding, including the ability to pursue.
The Biden administration has the power to address the environmental justice issue of the island's continuing power outages and slow transition to solar power, according to Queremos Sol's Santiago.
Anyone who can afford to get rooftop solar and batteries is doing it. She said that there aren't a lot of people who can afford to do that on their own. The way to get this solution in place is to use federal funds.
