The proposals for the revision of the public energy policy established through Act 17 of 2019, contemplated by the administration of Governor Jenniffer González Colón, must be translated into a clear reaffirmation of a commitment to modernize the electric grid, which is a vital issue for the stability and economic development of Puerto Rico.
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It has been a solid step by the new government to appoint a specialized multidisciplinary committee to address the energy issue seriously. For its part, the recommendation of this group to eliminate the generation goals imposed by the current law, which proposes to leave without effect the provision to produce 40% of energy with renewable sources by 2025, as well as the goal of 60% by 2040, could bring a paradigm shift in how the problem has been addressed so far.
Engineer Josué Colón, appointed to lead the Office of the Energy Czar, has justified the interest in modifying the public energy policy by stating, among other issues, that Law 17 is linked to high prices for renewable energy systems. In addition, he stressed the importance of completing the bankruptcy process of the Puerto Rico Electric Power Authority. This should contribute to a market that can attract investors willing to safely contribute to a comprehensive energy renewal.
In view of the consideration of new legislative projects on the country’s energy future, it will be essential that there be a broad discussion in the chambers to promote clear and well-justified provisions to expeditiously address the modernization of the grid through diversified generation, including natural gas, a resource considered in the United States as renewable energy.
Indicators on solar or wind generation on the island reflect limited and insufficient production. In addition, apart from the cost of maintenance of solar panels and the need for periodic replacement of batteries, these systems are fallible in adverse weather conditions such as prolonged periods of precipitation or others. In this sense, legislation that does not represent a straitjacket on the alternatives of safe generation and high efficiency transmission is pertinent. The changes should also allow for the projected generation cost of 12 or 13 cents per kilowatt hour, instead of 20 cents or more paid at present.
It will be appropriate to determine the reasons for the impossibility of meeting the current goals to ensure the correct measures to advance in the transformation that will definitively repair the instability of a deficient and costly system that unfairly keeps the entire population in the uncertainty associated with frequent interruptions of electric service.
The inaction of past governments is not an option in the face of a scenario that includes the closure of the coal plant of AES in 2027, which implies a deficit of 1,000 megawatts, if a successful replacement of generation is not first put in place. Time is running out and it seems that the Governor understands this. Action must be taken.
Puerto Rico’s full recovery from the devastating cyclonic shocks of 2017, which damaged critical infrastructure and exacerbated the recession, can only be expedited with a robust energy system. Private sector energy producers recognize the challenges so they have been receptive to public policy adjustments. Likewise, experts and entities such as the Center for a New Economy, which recommended in advance to extend the deadlines for generation with clean sources.
In view of the new government’s plans, it will be important to address, among other issues, the updated estimate of the investments required for the adjusted goals, as well as the indispensable resources to achieve them, according to experts from the aforementioned organization.
Given this scenario, it is imperative to examine the responsibilities of the Bureau of Energy of Puerto Rico, in accordance with its current legal framework, to also determine adjustments to its mandate and define the powers of the entity before the creation of the figure of the Energy Czar. At the same time, it will be necessary to consider the approval of uniform metrics for the prevalence of clean energy in the local grid, as a guarantee of realistic projections of generation modification, according to industry insiders.
In the effort to fine-tune the new legislation, it is important to be clear about the plan to be followed by the new government, as well as the terms and concepts, including the idea of decarbonization, associated to the discarding of oil as the main raw material to produce energy.
The precise and categorical articulation of the new public energy policy will be fundamental to achieve the urgent task of providing Puerto Rico with a safe, robust and resilient grid as the main pillar of the rebound in social and economic development that our country deserves.
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This content was translated from Spanish to English using artificial intelligence and was reviewed by an editor before being published.
