$365M Allocated for Solar Projects in Puerto Rico Redirected to Power Grid, Sparking Outrage
SAN JUAN, Puerto Rico (AP) — On Wednesday, the U.S. Department of Energy revealed plans to redirect $365 million initially designated for solar initiatives towards different purposes.
Puerto Rico
will be diverted to improve the island’s crumbling power grid, sparking an outcry just days before the Atlantic hurricane season starts.
Recently, the funds have been in suspense for several weeks as the Department of Energy failed to meet a deadline set for finalizing agreements valued at $365 million. These contracts were intended to facilitate the installation of battery-powered solar systems at healthcare facilities and public housing projects in Puerto Rico.
The funds were allocated for this purpose during the tenure of ex-U.S. President Joe Biden.
“The funds were designed to be released immediately,” stated Javier Rúa Jovet, who serves as the public policy director for Puerto Rico’s Solar and Energy Storage Association.
He along with several others condemned the action.
“This is disgraceful,” Democratic Representative Nydia Velázquez from New York posted on X, pointing out that the resources were intended for those who are most at risk.
“Republicans have abandoned those who need help the most, merely one week prior to the commencement of hurricane season,” she penned.
Nonprofit organizations like the Hispanic Federation have stated that these funds were critically required to ensure consistent electricity for individuals, particularly those undergoing dialysis treatments.
Major disruptions keep affecting Puerto Rico.
.
“Pretending that shifting these funds will have an instant impact on the stability of the electric grid, which already has an $18 billion budget, is merely a distraction from the actual repercussions of their choice. Puerto Rico merits more,” stated Frankie Miranda, who serves as both the CEO and president of the federation.
The Department of Energy stated that the funds will instead be utilized to back “technologies enhancing system adaptability and responsiveness, power distribution and management, component durability, supply reliability, and safety.”
A representative from the Department of Energy informed The Associated Press that the funding would cover several areas such as improving outdated infrastructures, removing plant growth near power lines, and managing base-load generators. The department stated they have ultimate discretion regarding fund allocation, noting that solar initiatives were planned to commence construction only by 2026.
U.S. Energy Secretary Chris Wright stated that reallocating the funds would guarantee “that taxpayer money is utilized to enhance accessibility to cost-effective, dependable, and secure electricity, thereby benefitting a larger number of citizens at an accelerated pace.”
In the meantime, Puerto Rico Governor Jenniffer González endorsed the decision in a statement, noting that it would benefit all 3.2 million inhabitants of the island rather than “just a handful of consumers.”
“Puerto Rico is grappling with an urgent energy crisis that demands prompt action and swift implementation of effective measures. Our neighborhoods, enterprises, and medical centers do not have the luxury to wait for years, nor can we depend solely on fragmented strategies offering minimal impact,” she stated.
González
previously came under fire
As her backing for allocating $1 billion in federal money toward solar initiatives throughout Puerto Rico seemed to diminish.
A representative of the governor didn’t promptly reply to requests seeking further comments and information.
A representative for Josué Colón, who is referred to as the island’s energy director, did not promptly reply to requests for comments.
Dwindling power generation
Rúa Jovet pointed out that there are currently at least $16 billion in unallocated funds from the U.S. Federal Emergency Management Agency intended to enhance Puerto Rico’s electrical infrastructure. She emphasized that the $365 million ought to be utilized for its initial objective.
There is nothing quicker and more efficient than solar panels,” he stated. “We should all be progressing at the fastest pace possible with power production.
Authorities in Puerto Rico have already cautioned about an expected shortfall in power generation this summer. Moreover, the Atlantic hurricane season begins on June 1st, and forecasts suggest it will be more active than usual, with nine projected hurricanes, including four significant ones.
Many people in Puerto Rico fear that even a minor storm could cause widespread power outages due to the grid’s vulnerable condition.
Puerto Rico has already experienced island-wide power outages.
Dec. 31
and
April 16
.
The redirection of funds comes as González offers criticism.
the efforts of Luma Energy,
This entity manages the transmission and distribution of electricity on the island, whereas General PR is responsible for power generation.
The two private firms were hired by the former administration as the Puerto Rico Electric Power Authority faced challenges in restructuring over $9 billion in public debt.
mediation still stalled
.
‘Elections have consequences’
During Biden’s tenure, there was an emphasis on advancing more renewable energy initiatives in Puerto Rico, where teams are continuing to reconstruct the power grid post-disaster.
Hurricane Maria
struck in September 2017 as a potent Category 4 hurricane. However, the electrical infrastructure was already fragile prior to the storm due to insufficient upkeep and investment over many years.
Rúa Jovet stated that the Department of Energy’s choice was driven ideologically and backed by the administration led by U.S. President Donald Trump.
Out of the $1 billion set aside for solar initiatives in Puerto Rico by President Biden, $450 million has already been awarded to equip numerous residences in rural regions or those with residents having medical requirements with solar rooftops and battery systems.
In total, approximately 117,000 residences and commercial properties on the island are equipped with solar panels on their roofs.
Over 60% of the energy in Puerto Rico comes from oil-powered facilities, with an additional 24% derived from natural gas, 8% from coal, and 7% from renewable sources, as reported by the U.S. Energy Information Administration.
Danica Coto, The Associated Press