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Puerto Rico   Puerto Rico Profile

Territory Profile and Energy Estimates

Changes to the State Energy Data System (SEDS) Notice: In October 2023, we updated the way we calculate primary energy consumption of electricity generation from noncombustible renewable energy sources (solar, wind, hydroelectric, and geothermal). Visit our Changes to 1960—2022 conversion factor for renewable energy page to learn more.

Profile AnalysisPrint Territory Energy Profile
(overview, data, & analysis)



Last Updated: February 15, 2024

Overview

Puerto Rico consumes almost 70 times more energy than it produces.

The Commonwealth of Puerto Rico consists of the easternmost islands of the Greater Antilles in the Caribbean Sea, southeast of Florida. Puerto Rico has no proved reserves or production of fossil fuels. The Commonwealth has some renewable resources in the form of solar, wind, hydropower, and biomass, but relies primarily on imported fossil fuels to meet its energy needs.1,2,3 Puerto Rico consumes almost 70 times more energy than it produces. In 2021, petroleum accounted for 58% of the Commonwealth's total energy use, while natural gas accounted for 28%, coal 12%, and renewables about 1%.4 Puerto Rico's energy consumption per capita is about one-fourth that of the 50 U.S. states.5

Puerto Rico has coastal plains, sandy beaches, and a forested and mountainous interior, where the highest peak exceeds 4,000 feet.6 The mountains in the interior separate the main island into two distinct climate regions. The north is relatively humid and the south semi-arid. Overall, the island's tropical marine climate has little seasonal variation, and rain occurs year-round.7,8 Because of its tropical climate, 9 out of 10 Puerto Rican households have no heating system.9 The Caribbean hurricane season, which runs from June to November, sometimes brings destructive storms. In 2017, hurricanes Irma and Maria devastated much of the Commonwealth's electricity infrastructure and left many residents without power for months.10,11 Puerto Rico suffered further damage to its electric grid and an island-wide power blackout when Hurricane Fiona struck in September 2022 with 100 mph winds and 30 inches of rain.12,13

Previously unknown undersea faults on the south side of Puerto Rico triggered a sequence of earthquakes that began in December 2019.14,15 This culminated in a 6.4 magnitude earthquake in January 2020, which significantly damaged infrastructure on the island and led to power outages.16 This earthquake was followed by numerous aftershocks, the largest of which was a 5.4 magnitude earthquake on May 2, 2020.17,18 The earthquake and aftershocks left two-thirds of Puerto Rico's residents without power and significantly damaged the island's two largest power plants.19

The Commonwealth's population is concentrated on the main island of Puerto Rico, with the highest population density around the capital city of San Juan on the northern coast. There are smaller populations on the islands of Vieques and Culebra. There are also small, uninhabited islands scattered around the main island.20 The Commonwealth's population reached 3.8 million in 2000, but declined since then to slightly over 3.2 million in 2022.21 Puerto Ricans are U.S. citizens, and some have chosen to move to the U.S. mainland, in part because of the island's prolonged struggling economy and natural disasters, although Puerto Rico's economy improved in mid-2022 following a downturn during the COVID-19 pandemic.22,23 About 133,500 people left the island in 2018 after Hurricane Maria hit.24 Although more people are leaving Puerto Rico than entering, the number of those leaving has slowed. About 55,000 people left in 2021, the first time this number fell below 60,000 since 2010, and 43,000 left in 2022.25 However, this migration trend is impacting Puerto Rico's economic growth.26

Agriculture, mainly sugar cane, dominated Puerto Rico's economy until the 1960s.27 Today, agriculture, with milk, grain, and field crops accounting for more than half the value of agricultural products sold, is a relatively small part of Puerto Rico's economy.28,29,30 Private sector investment is concentrated in the manufacturing sector, especially in pharmaceuticals and medical devices, electronics, aviation, information technology, and renewable energy.31,32 However, as federal tax incentives were phased out in the mid-1900s, investments in the manufacturing sector decreased.33,34 Employment in the Commonwealth government has declined since 2009, but the public sector still employs about one in six workers.35 In 2016, because the Commonwealth faced more than $100 billion in debt and unfunded liabilities, the U.S. Congress established a financial oversight board through the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) to restructure the island's debt and stabilize its economy.36,37 The oversight board's bankruptcy plan to reduce Puerto Rico's debt by 80% was approved by a federal court, and Puerto Rico's government formally exited bankruptcy in March 2022.38,39,40

Electricity

The Puerto Rico Electric Power Authority (PREPA, also known as Autoridad de Energía Eléctrica, or AEE) is Puerto Rico's publicly owned power utility.41 Founded in the 1920s as a water resource agency, PREPA's responsibilities grew over the years to encompass island electrification.42 It serves more customers—about 1.5 million—than any other public electric utility in the United States. However, on a per-customer basis, PREPA provides less than half as much power as similar-sized U.S. mainland utilities.43

In 2022, fossil fuel-fired power plants provided 93% of Puerto Rico’s electricity generating capacity.

In 2022, fossil fuel-fired power plants provided 93% of Puerto Rico's electricity generating capacity. Petroleum-fired power plants provided 63%, followed by natural gas with 23%, coal 8%, and renewables 6%.44 By comparison, less than 1% of the electricity generated in the 50 U.S. states is provided by petroleum—except Hawaii with 62% and Alaska with 14%.45,46

The commercial sector consumes about 47% of Puerto Rico's electricity, the residential sector accounts for 42%, and the industrial sector makes up about 11%. Puerto Rico's per capita electricity consumption is less than half that of the 50 U.S. states.47,48,49 PREPA's heavy reliance on petroleum means that Puerto Rican power prices fluctuate with international petroleum prices and vary monthly with fuel and purchased power costs.50 In 2022, Puerto Rico's average electricity price was higher than in all but one U.S. state, Hawaii.51

Puerto Rico's electric power sector has suffered from decades of mismanagement, underinvestment, and natural disasters.52 In September 2017, Hurricanes Irma and Maria made landfall two weeks apart and destroyed much of Puerto Rico's electricity transmission and distribution infrastructure.53 Generating facilities were not as badly damaged as the electric grid. Still, PREPA's largest generating plants are in the south, while the largest population concentrations are in the north, making the system dependent on its 2,600 miles of transmission and about 32,000 miles of distribution lines.54,55

In January 2020, the 6.4 magnitude earthquake that hit Puerto Rico significantly damaged the island's two largest power plants, Costa Sur and EcoEléctric.56 The earthquake caused widespread power outages and shifted Puerto Rico's electricity generation energy mix to a higher reliance on petroleum, as the two damaged power plants primarily used natural gas for electricity generation. The 766-megawatt Costa Sur is the largest power plant in Puerto Rico and represents 56% of the island's natural gas-fired electricity generating capacity.57,58

After the hurricanes and earthquakes, PREPA had to both rebuild its electricity infrastructure and restructure its business, while facing financial constraints. In 2018, as part of the restructuring plan, the Puerto Rico legislature approved privatizing parts of PREPA. Under the plan, private entities will manage, operate, and maintain PREPA's generation assets and electricity transmission and distribution system.59 In June 2020, the private entity LUMA Energy, made up of a group of U.S. and Canadian companies, was selected to operate Puerto Rico's electricity transmission and distribution system. In June 2021, LUMA Energy began its role to reduce power interruptions, provide reliable electricity service to the island's residents and businesses, and upgrade the power grid.60,61 Since then, LUMA Energy has reduced service interruption frequency by 35% and interruption duration by 25%.62 However, the company is receiving criticism for continued electricity price increases and failing to meet planned savings targets.63,64 In January 2023, Genera PR, a subsidiary of New Fortress Energy Inc., was selected to operate, maintain, and decommission, where applicable, PREPA's aging electricity generating assets through a 10-year agreement.65,66

Petroleum

Puerto Rico has no crude oil production, refining capacity, or proved oil reserves. However, a 2013 U.S. Geological Survey assessment identified potential undiscovered crude oil resources in a subsea formation south of the island.67 Petroleum accounts for about three-fifths of the energy consumed in Puerto Rico. The island imports all of its petroleum products, mostly through the port of San Juan, with minor shipments also arriving at the ports of Ponce, Guayanilla, and Yabucoa.68,69 The last of Puerto Rico's five petroleum refineries, located at Yabucoa, shut down in 2009, joining four other island refineries that closed between 1992 and 2005.70 However, 4.6 million barrels of tank storage and shipping facilities at the Yabucoa site, near the southeast corner of Puerto Rico, continue to be used as a petroleum terminal.71,72

Motor gasoline, residual fuel oil, and jet fuel account for about 8 out of 10 barrels of petroleum products imported by Puerto Rico and most of it is used by the Commonwealth's transportation and electric power sectors.73 Puerto Rico allows use of conventional motor gasoline without ethanol.74 Puerto Rico's per capita consumption of petroleum is about 9 barrels per year, compared to an average of 22 barrels annually in the United States.75,76,77

Natural gas

Puerto Rico does not produce natural gas and has no proved gas reserves. However, the 2013 U.S. Geological Survey assessment also identified possible undiscovered natural gas resources in a subsea formation south of the island.78 Natural gas arrives in Puerto Rico at two liquefied natural gas (LNG) import terminals, one located near Ponce at Guayanilla Bay in the southwest and one at the Port of San Juan in the north.79,80,81 The regasified LNG is used to fuel electricity generation at the 766-megawatt Costa Sur power plant and the 580-megawatt EcoEléctrica power plant. There are also several small natural gas-fired generating units at industrial sites.82 The imported LNG mostly comes from Trinidad and Tobago and Nigeria, with smaller shipments from Spain.83 Minor amounts of LNG from the U.S. mainland are also shipped to Puerto Rico to supply fuel to industrial customers and container ships.84

PREPA is planning to obtain 100% of its electricity supply from renewable sources by 2050.

Beginning in 2012, LNG imports increased to support PREPA's conversion of the petroleum-fired Costa Sur generating station to dual-fuel capability with natural gas and more recently, the conversion of the San Juan petroleum-fired generating station to natural gas.85,86,87 PREPA has long planned to add more natural gas-fired electric generating capacity. However, PREPA's Integrated Resource Plan approved by the Puerto Rico Energy Board in August 2020 supports more new renewable energy generation rather than new natural gas projects.88,89,90 Puerto Rico's typical per capita natural gas consumption is about one-fourth of the average for the 50 U.S. states.91,92

Renewable energy

Puerto Rico's renewable resources include solar energy, wind energy, hydropower, and biomass. Under the Puerto Rico Energy Public Policy Act, PREPA must obtain 40% of its electricity supply from renewable resources by 2025, 60% by 2040, and 100% by 2050.93 To facilitate this shift, PREPA has procured over 840 megawatts of new renewable generation capacity. However, as of mid-2023, none of these projects had commenced operation.94 According to PREPA, in April 2023, about 3% of electricity generation came from renewable energy sources.95 In 2022, solar photovoltaics (PV) accounted for about two-fifths, hydroelectric for about three-tenths, and wind power for about one-fourth of total renewable generation capacity. The remainder came from landfill gas-fueled facilities.96 Puerto Rico's largest solar PV and battery storage project, Ciro One, is expected to begin operating at the end of 2024, providing 90 megawatts of electricity and 51 megawatts of related battery energy storage.97

Most renewable generating facilities survived Hurricane Maria with modest amounts of damage, but the 20-megawatt Humacao solar farm and the 23-megawatt Punta Lima wind farm—both on Puerto Rico's east coast where the eye of the storm came ashore—were badly damaged.98,99 The solar PV farm was rebuilt and the Punta Lima wind farm is operating.100,101 The earthquakes in early 2020 did not damage any renewable generating facilities. The solar microgrids using rooftop solar panels, which were installed primarily by private, federal, and non-profit organizations after the hurricanes in 2017, were able to maintain power supply in some communities following the earthquakes.102

Solar energy is Puerto Rico's fastest growing source of renewable generation, increasing from 0.5% of total generation in 2015 to 1.7% in 2021.103 The largest solar farm, the 45-megawatt Oriana facility, came online in late 2016 and accounts for about three-tenths of the Commonwealth's solar generating capacity.104,105 About 183 megawatts in new utility-scale solar power and related storage battery capacity is scheduled to come online by 2025.106 The U.S. Congress passed legislation in December 2022 that provides $1 billion to the Puerto Rico Energy Resilience Fund (PR-ERF) to improve the resilience of Puerto Rico's electric grid.107 As part of the PR-ERF, U.S. Department of Energy has announced $440 million in funding to install rooftop solar and battery storage for the most vulnerable communities in Puerto Rico.108

Puerto Rico's largest utility-scale wind farm is the 75-megawatt Santa Isabel facility on the southern coast, which started generating electricity in 2012. There is a smaller 0.6-megawatt wind turbine at the Fort Buchanan U.S. Army Garrison in San Juan.109 Other wind projects have been proposed, but Puerto Rico's onshore wind resources are limited. The island has more offshore wind potential. The National Renewable Energy Laboratory estimates that Puerto Rico has a potential capacity of 6.8 gigawatts for land-based wind and 40.7 gigawatts for offshore wind.110,111

Puerto Rico's 20 hydroelectric generating units, most of which are more than 70 years old, are sited on reservoirs that often supply drinking and irrigation water as well as electricity.112,113 Hydropower generation varies significantly, affected by rainfall, competing water uses, and lack of funds for maintenance. However, under the new Integrated Resource Plan, PREPA is exploring options to update these facilities as part of its requirement to increase the use of renewable energy.114,115

In the past, PREPA encouraged development of municipal solid waste, landfill gas, and other waste-to-energy facilities, but proposed facilities have faced local opposition and were canceled.116 Two landfill gas generating facilities, located at Fajardo and Toa Baja, have a combined capacity of 4.8 megawatts and began producing electricity in 2016 and 2020, respectively.117 However, many of the island's landfills cannot be used for electricity generation because they violate federal standards and the U.S. Environmental Protection Agency has ordered some of them to close.118,119,120

Coal

Puerto Rico plans to phase out coal-fired electricity generation by 2028.

Puerto Rico has no coal reserves and produces no coal.121 The Commonwealth has one coal-fired electricity generating plant, located at Guayama. The 454-megawatt plant began operations in 2001.122 Puerto Rico consumed 1.4 million tons of coal in 2021, the lowest amount since 2018. Almost all of it was bituminous coal to fuel the power plant.123 Puerto Rico plans to phase out coal-fired electricity generation by 2028.124,125

Endnotes

1 U.S. Energy Information Administration (EIA), Puerto Rico Territory Energy Profile, Data, Reserves, Imports & Exports, Supply.
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3 U.S. EIA, International Energy Statistics, Puerto Rico, 2021 primary energy data in quadrillion BTU.
4 U.S. EIA, International Energy Statistics, Puerto Rico, 2021 primary energy data in quadrillion BTU.
5 U.S. EIA, International Energy Statistics, Energy Intensity Annual - Puerto Rico and United States (mmBtu/per person), 2017-21.
6 U.S. Central Intelligence Agency, World Factbook, Puerto Rico, Geography, accessed December 12, 2023.
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52 Autoridad de Energía Eléctrica, 2023 Fiscal Plan for the Puerto Rico Electric Power Authority, As certified by the Financial Oversight and Management Board for Puerto Rico on June 23, 2023, p. 21, 46.
53 New York Power Authority, Build Back Better: Reimagining and Strengthening the Power Grid of Puerto Rico (December 2017), p. 10-11.
54 New York Power Authority, Build Back Better: Reimagining and Strengthening the Power Grid of Puerto Rico (December 2017), p. 9, 14.
55 Autoridad de Energía Eléctrica, 2022 Fiscal Plan for the Puerto Rico Electric Power Authority, As certified by the Financial Oversight and Management Board for Puerto Rico on June 28, 2022, p. 27.
56 U.S. Geological Survey, "As Aftershocks Continue in Puerto Rico, USGS Supports Quake Recovery" (January 17, 2020).
57 U.S. EIA, "Puerto Rico's electricity generation mix changed following early 2020 earthquakes," (June 24, 2020).
58 U.S. EIA, Electricity, Preliminary Monthly Electric Generator Inventory (based on Form EIA-860M as a supplement to Form EIA-860), Inventory of Operating Generators as of November 2023 - Puerto Rico, Technology: All.
59 Coto, Danica, "Private company takes over Puerto Rico power utility service," AP (June 1, 2021).
60 Autoridad de Energía Eléctrica, 2023 Fiscal Plan for the Puerto Rico Electric Power Authority, As certified by the Financial Oversight and Management Board for Puerto Rico on June 23, 2023, p. 23, 25.
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66 New Fortress Energy, "NFE Subsidiary Genera Awarded Contract to Manage Puerto Rico's Power Generation System," Press Release (January 25, 2023).
67 Schenk, Christopher J. and Ronald R. Charpentier, "Assessment of Undiscovered Technically Recoverable Oil and Gas Resources of Puerto Rico and the Puerto Rico-U.S. Virgin Islands Exclusive Economic Zone," U.S. Geological Survey, Fact Sheet 2013-3101 (November 2013).
68 U.S. EIA, International Energy Statistics, Puerto Rico, Primary Energy, Consumption (quad Btu), 2021.
69 U.S. EIA, Company Level Imports, Port State: Puerto Rico, October 2023.
70 U.S. EIA, Refinery Capacity 2022, Table 13, Refineries Permanently Shutdown By PAD District Between January 1, 1991 and January 1, 2023, PAD District VI.
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78 Schenk, Christopher J., et al., "Assessment of Undiscovered Technically Recoverable Oil and Gas Resources of Puerto Rico and the Puerto Rico-U.S. Virgin Islands Exclusive Economic Zone," U.S. Geological Survey, Fact Sheet 2013-3101 (November 2013).
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