From the first day in office, the Biden-Harris Administration has been committed to supporting the recovery and modernization of Puerto Rico's energy infrastructure. From unlocking billions of dollars in disaster funding, to enacting historic investments under the Inflation Reduction Act and the Bipartisan Infrastructure Law, the Biden-Harris Administration's efforts are increasing Puerto Ricans' access to reliable energy, improving the island's grid infrastructure, and boosting the local energy sector workforce with good-paying jobs, all while ensuring that the needs of Puerto Rico's most vulnerable communities are supported in this recovery.
Putting Long-Awaited Disaster Recovery Funds to Work
The Biden Administration has taken historic action to accelerate the reconstruction of Puerto Rico's grid following the devastation caused by Hurricane Maria in 2017 by unlocking billions of dollars in disaster recovery funds, which had been held back between 2017 and 2020 through unfair and unnecessary restrictions. Since 2021, the Biden-Harris Administration has worked closely with the Puerto Rico government to streamline and accelerate recovery spending, resulting in critical projects that are bolstering the reliability and resilience of Puerto Rico's grid.
To date, the Federal Emergency Management Agency (FEMA) has obligated over $6 billion out of $9.5 billion approved for the Puerto Rico Electric Power Authority (PREPA) through the Hurricane Maria Public Assistance Program. Obligated funds are supporting nearly 200 projects to improve the reliability and resilience of Puerto Rico's grid including an initiative to replace 1.5 million meters with smart technology to enable faster detection of energy service interruptions, and the deployment of 430 megawatts (MW) of 4-hour battery storage systems to enhance grid stability and reduce reliance on more expensive backup power. Through the Public Assistance program, FEMA also financed the acquisition of 14 generators for temporary use with a capacity to produce about 340 MW to address urgent generation shortfalls and provide stability while critical repairs to existing generation plants are completed.
FEMA has also made an additional $7.6 billion available through the Hurricane Maria Hazard Mitigation Program for projects designed to make the grid more resilient to future disasters. This includes funding for a state-of-the-art microgrid system for the island municipalities of Vieques and Culebra to minimize the impact of future power outages, improving the quality of life for over 9,000 residents. The microgrid, which will be able to function independently from the main grid, includes a 12.5 MW solar-based system for Vieques and another 3 MW system for Culebra.
Since 2021, the Department of Housing and Urban Development (HUD) has authorized the use of over $2.8 billion in Community Development Block Grants for Disaster Recovery and Mitigation to address the energy needs of the most impacted areas and to low- and moderate-income (LMI) communities. Of this, a total of $500 million is being used for the Energy Grid Rehabilitation and Reconstruction Cost Share Program, which provides a significant contribution to PREPA's cost-share requirement for FEMA Public Assistance funding. The remaining $2.3 billion is actively supporting the deployment of over 600 MW of new rooftop solar capacity in underserved areas. For example, programs like Community Energy and Water Resilience Installations, New Energy, Solar Incentive, andCommunity Installationsare providing financial support for solar systems with battery backup to an estimated 20,000 LMI residents. The Agro-Energy Stability Program provide grants to eligible farmers for the design, acquisition, and installation of renewable solar energy projects to cover up to 100% of their annual energy consumption needs. The Electrical Power Reliability and Resilience Program will fund strategic and competitive projects that enhance Puerto Rico's power grid infrastructure, particularly by incorporating renewable energy technologies to ensure the grid's reliability and resilience, such as a microgrid for the Centro Médico Hospital in San Juan to ensure that critical medical services continue operating even during power outages.
Improving Access to Reliable Energy through President Biden's Investing in America Agenda
President Biden's Investing in America agenda-including historic legislation such as the American Rescue Plan, Bipartisan Infrastructure Law, and Inflation Reduction Act-is delivering results for communities in every corner of the United States, and Puerto Rico is no exception.
Puerto Rico was still recovering from the devastation of Hurricanes Irma and Maria when the COVID-19 pandemic struck. The American Rescue Plan delivered aid for the short- and long-term economic impacts caused by COVID-19, including $20 million for theEnergy Incentive Program to assist businesses in the development of low-cost solar and battery storage systems. The program provided up to $25,000 to small and medium business, helping offset operating costs and allowing them to stay open during power outages.
The Inflation Reduction Act is the most ambitious investment in combating the climate crisis in world history. Since its enactment on August 16, 2022, the Inflation Reduction Act has enabled the following achievements for Puerto Rico:
- Thanks to the Inflation Reduction Act's elective pay provisions, clean energy tax credits are available to local entities in Puerto Rico for the first time. Through the new elective pay mechanism, nonprofits, government agencies, and other tax-exempt entities in Puerto Rico can now receive a payment equal to the full value of tax credits for building qualifying clean energy projects.
- Through the Solar for All grant program, the Environmental Protection Agency (EPA) awarded $156 million to the Puerto Rico Office of Management and Budget to develop long-lasting solar programs that enable low-income and disadvantaged communities to benefit from reliable solar power. The grant is projected to support the deployment of 34 MW of residential solar capacity and impact 14,000 households.
- EPA's Community Change Grants Program is providing nearly $52 million across three local organizations to fund energy projects in several communities in Puerto Rico to enhance residential- and community-level resilience.
- The Inter-American University of Puerto Rico received a $10 million grant from EPA to establish a Thriving Communities Technical Assistance Center to support communities in accessing federal funding for energy and environmental justice.
- The U.S. Department of Energy's (DOE) Loan Programs Office (LPO) has leveraged the Title 17 Clean Energy Financing Program to finance solar energy and battery storage facilities in Puerto Rico. To date, LPO has announced a loan guarantee of $861.3 million forProject Marahu, and a conditional commitment for a loan guarantee of up to $584.5 million for Convergent. Together these projects represent 300 MW of solar generation and 565.5 MW of reliable battery storage.
- LPO is also enabling access to residential rooftop solar and battery storage through a $3 billion partial loan guarantee to Sunnova Energy Corporation's Project Hestia. Up to 20% of systems will be installed in Puerto Rico, representing up to 23,000 customers.
- DOE has allocated $85 million to Puerto Rico's Department of Economic Development and Commerce through the Home Energy Rebates Program to incentivize appliance replacements and home improvements that can lower energy bills for homeowners.
- Under the Inflation Reduction Act, new possibilities for offshore wind are opening up along the coasts of Puerto Rico, allowing the Department of the Interior to explore wind lease sales in prime areas.
Finally, the Bipartisan Infrastructure Law provides additional funding to support Puerto Rico's grid modernization and resilience. DOE's Grid Resilience State and Tribal Formula Grants Program provides non-competitive funding to states, territories and Indian tribes to improve the resilience of their electric grids. Puerto Rico has received $11 million to date, administered by the Central Office for Recovery, Reconstruction and Resilience, to expand the use of virtual power plants and microgrids for improved energy resilience. An additional $3.4 million will be awarded in 2025. DOE is also administering $5.6 million in Energy Efficiency and Conservation Block Grantsin Puerto Rico, including $1.9 million to the Department of Economic Development and Commerce and $3.7 million to 33 municipalities to support a broad set of initiatives to reduce energy use, reduce fossil fuel emissions, and improve energy efficiency. DOE also provided a $1 million grant for the Puerto Rico Green Energy Trust to establish an energy efficiency revolving loan fund that provides loans and grants for energy efficiency audits, upgrades, and retrofits to low- and moderate-income residents. DOE is awarding $37 million to boost Puerto Rico's Weatherization Assistance Program-a 30-fold increase to Puerto Rico's annual appropriations-to reduce energy costs for an estimated 6,000 low-income households by increasing the energy efficiency of their homes and/or deploying rooftop solar and battery storage systems.
Improving Energy Affordability and Resilience for Puerto Rico's Most Vulnerable Residents
With $1 billion from the 2023 Consolidated Appropriations Act, DOE established the Puerto Rico Energy Resilience Fund to drive key investments in resilient and renewable energy infrastructure for vulnerable communities in Puerto Rico. Since its inception on February 21, 2023, DOE has launched several key initiatives:
- Programa Acceso Solar: This $450 million initiative is providing solar and battery storage systems to low-income households with residents who rely on electricity and battery-powered medical devices, or otherwise reside in areas that experience frequent power outages. These solar and battery systems are designed to provide reliable electricity even during power outages. Beneficiaries of this program can receive their systems with zero upfront costs, as well as education and support on how to use and maintain them. DOE is partnering with a network of community-based organizations known as Solar Ambassadors to identify, engage, and assist with intake processing of qualifying households. To help ensure these vulnerable households can best use their solar and battery systems and exercise their consumer rights, DOE also selected two organizations-Hispanic Federation Inc. and the Institute for Building Technology and Safety-to lead education, training, and consumer protection initiatives. Programa Acceso Solar will bring energy resilience to up to 20,000 households and contribute approximately 100 MW of renewable capacity to Puerto Rico's grid.
- Community-Sponsored Installations: Four non-profits and cooperatives-Barrio Eléctrico, Environmental Defense Fund, Let's Share the Sun Foundation, and Solar United Neighbors, Inc.- were collectively awarded $40 million to deploy up to 2,000 residential solar and storage systems in their communities, representing 10 MW of renewable capacity. These community-sponsored installations are underway in communities across Puerto Rico-from Isabela and Adjuntas to Salinas and Culebra-to benefit qualifying low-income households.
- Programa de Comunidades Resilientes: A $365 million initiative to provide funding for solar and battery storage installations across two types of vital infrastructure serving low- and middle-income populations: community healthcare facilities, as well as community centers and other common areas in public housing and privately owned subsidized multi-family properties. Four teams with an existing presence in Puerto Rico will coordinate the deployment of projects across facilities or properties in partnership with local stakeholders. Programa de Comunidades Resilientes will deploy up to 400 systems representing 60 MW of renewable capacity across facilities that serve an estimated 430,000 Puerto Ricans.
Empowering Local Communities
The Biden-Harris Administration is focused on ensuring that Puerto Rico's energy future is equitable, inclusive, and fosters innovation. Through programs that encourage diversity, local energy solutions, and workforce development, the administration is empowering communities to lead the transition to renewable energy.
DOE launched a series of prize competitions, competitive solicitations, and technical assistance programs with low barriers to entry to foster community-led innovation and entrepreneurship in underserved areas of Puerto Rico:
- Local electric cooperative Cooperativa Hidroeléctrica de la Montaña and partners Fundación Borincana and Pecan Street received $200,000 through the Inclusive Energy Innovation Prizeto collect household energy usage data to design tailored microgrids for rural villages in the central mountains of Puerto Rico.
- The Cooperativa Hidroeléctrica de la Montaña also received $50,000 from the Community Power Accelerator and technical assistance through the Communities LEAP Programto further support the design and implementation of resilient microgrids in rural areas.
- Three communities in Puerto Rico (La Margarita in Salinas, Comunidad Toro Negro in Ciales, and Playa de Ponce in Ponce) are receiving technical and financial assistance through theEnergy Transitions Initiative Partnership Project to develop sustainable, clean energy infrastructure tailored to their specific needs.
- La Margarita also received $205,000 through the Community Clean Energy Coalition Prize to develop community-driven clean energy projects that help improve energy access, reduce costs, and increase resilience.
- The DOE Office of Energy Justice and Equity created a $1 millionPuerto Rico Grid Resilience Hubs Program to fund solar and storage installations in 10 community centers to serve as resilience hubs in areas that experience long and frequent outages.
- DOE is also supporting development of the next-generation energy workforce through the Clean Energy Innovator Fellowship, which provides clean energy professionals, entrepreneurs, and innovators with resources, mentorship, and funding. DOE has sponsored four fellows at key energy entities including LUMA Energy and the Cooperativa Hidroeléctrica de la Montaña to advance their projects and contribute to Puerto Rico's energy transformation.
- Finally, DOE is supporting clean energy entrepreneurship in Puerto Rico through theEnergy Program for Innovation Clusters, which awarded $1 million to incubator Parallel18, an organization under the Puerto Rico Science, Technology and Research Trust, to support a clean energy initiative called Project Switch. Project Switch will help professors and students develop and commercialize clean energy technologies, boosting innovation and economic growth.
Since 2021, the U.S. Department of Agriculture (USDA) has made significant investments to address the energy needs of rural business and communities in Puerto Rico. Through the Rural Energy for America Program, USDA has invested $24,656,109 million in grants to help 137 agricultural producers and rural small business owners in Puerto Rico make energy efficiency improvements and renewable energy investments to lower energy costs, generate new income, strengthen their operations, and recover quickly when disasters strike. The most recent round of nearly $5.5 million in grants will support 21 projects, representing approximately 5 MW of renewable capacity. USDAhas also awarded nearly $18 million to 24 projects in Puerto Rico through theCommunity Facilities Programto develop or improve essential public services and facilities in rural communities. For example, Educational Services Corpus Christi Corp was awarded a grant of $67,000 for solar panels and battery backup equipment to reduce the school operating expenses and increase energy sustainability.
The Biden-Harris Administration's commitment to Puerto Rico is marked by an unprecedented interagency approach to support a transition to a more modern, reliable, and sustainable energy system. Billions of dollars in federal disaster recovery funding are being used towards grid improvements that will significantly reduce service interruptions and improve the ability to withstand future storms. Through federal funding, tax incentives, and community-driven initiatives, Puerto Rico is making significant progress toward its renewable energy goals: collectively, the actions of the Biden-Harris Administration are directly supporting the addition of over 1,000 MW of new renewable energy capacity-nearly double the current amount-and another 1,000 MW of new battery storage capacity to serve hundreds of thousands of households. This whole-of-government strategy represents a major step toward ensuring a more secure and sustainable energy future for the people of Puerto Rico, improving their quality of life and fostering economic growth.
