Data

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Economy
Population and Industry	Puerto Rico	United States	Period
Population	3.3 million	325.7 million	2017
Gross Domestic Product	$ 103 billion	$ 18,121 billion	2015

Prices
Electricity	Puerto Rico	United States	Period
Residential	19.81 cents/kWh	13.30 cents/kWh	Aug-18
Commercial	21.63 cents/kWh	11.01 cents/kWh	Aug-18
Industrial	18.51 cents/kWh	7.24 cents/kWh	Aug-18

Reserves
Reserves	Puerto Rico	United States	Period
Crude Oil	0 billion barrels	NA	2018
Natural Gas	0 trillion cu ft	322 trillion cu ft	2017
Recoverable Coal	0 million short tons	254,896 million short tons	2015
Capacity	Puerto Rico	United States	Period
Total Electricity Installed Capacity	6 million kW	1,064 million kW	2015

Imports & Exports
Total Imports	Puerto Rico	United States	Period
Natural Gas Imports	52 billion cu ft	2,718 billion cu ft	2015
Coal Imports	1,682 thousand short tons	11,318 thousand short tons	2015
Total Exports	Puerto Rico	United States	Period
Natural Gas Exports	0 billion cu ft	1,784 billion cu ft	2015
Coal Exports	0 thousand short tons	73,958 thousand short tons	2015

Supply
Production	Puerto Rico	United States	Period
Total Energy	*	84 trillion Btu	2015
Crude Oil, NGPL, and Other Liquids	0 thousand barrels/day	14,461 thousand barrels/day	2017
Natural Gas - Gross	0 billion cu ft	32,915 billion cu ft	2015
Coal	0 thousand short tons	896,941 thousand short tons	2015
Total Utility-Scale Net Electricity Generation	Puerto Rico	United States	Period
Total Net Electricity Generation	20 billion kWh	4,092 billion kWh	2015
Petroleum, Natural Gas, and Coal Net Electricity Generation	20 billion kWh	2,727 billion kWh	2015
Total Electricity Generation from Renewable Sources	*	572 billion kWh	2015
»  Hydroelectric	*	249 billion kWh	2015
»  Other Renewables	*	323 billion kWh	2015

Consumption
by Source	Puerto Rico	United States	Period
Total Energy	*	93 trillion Btu	2015
Total Petroleum Products	106.0 thousand barrels/day	19,687.0 thousand barrels/day	2016
»  Motor Gasoline	42.0 thousand barrels/day	9,317.0 thousand barrels/day	2016
»  Distillate Fuel	11.0 thousand barrels/day	3,877.0 thousand barrels/day	2016
»  Liquefied Petroleum Gases	3.0 thousand barrels/day	1,340.0 thousand barrels/day	2016
»  Jet Fuel	2.7 thousand barrels/day	1,614.0 thousand barrels/day	2016
»  Kerosene	0 thousand barrels/day	9 thousand barrels/day	2016
»  Residual Fuel	36 thousand barrels/day	326 thousand barrels/day	2016
»  Other Petroleum Products	11 thousand barrels/day	3,204 thousand barrels/day	2016
Natural Gas	52 billion cu ft	27,244 billion cu ft	2015
Coal	1,458 thousand short tons	798,115 thousand short tons	2015

Carbon Dioxide Emissions
by Source	Puerto Rico	United States	Period
Total Fossil Fuels	28 million metric tons	5,269 million metric tons	2015
Petroleum	22 million metric tons	2,295 million metric tons	2015
Natural Gas	3 million metric tons	1,488 million metric tons	2015
Coal	3 million metric tons	1,485 million metric tons	2015

Analysis



Last Updated: July 19, 2018

Overview

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 conventional fossil fuels. The commonwealth has some renewable solar, wind, hydropower, and biomass resources but relies primarily on imported fossil fuels to meet its energy needs.^1,2,3,4

The population is concentrated on the main island of Puerto Rico, with smaller populations on the islands of Vieques and Culebra. There are also small, uninhabited islands scattered around the main island.⁵ Puerto Rico has coastal plains, sandy beaches, and a forested and mountainous interior, with the highest peak exceeding 4,000 feet. Rivers flowing down the mountains offer some hydropower resources.⁶ The tropical marine climate has little seasonal variation, and rain occurs year round. The Caribbean hurricane season, from June to November, sometimes brings destructive storms, such as Hurricanes Irma and Maria, which devastated much of the commonwealth's electricity infrastructure in September 2017 and left island residents without public power, in some cases for months.^7,8,9,10

The commonwealth's population reached 3.8 million in 2000, but it has declined in the 21st century.¹¹ Puerto Ricans are U.S. citizens, and some have chosen to move to the U.S. mainland since an ongoing recession began in 2006,^12,13,14 The commonwealth's population has declined by one-tenth, or nearly 400,000 people, since 2010, and estimates are that up to 200,000 of those who left after Hurricane Maria will not return, further complicating Puerto Rico's economic situation and hurricane recovery.^15,16,17

Agriculture, mainly sugar cane, dominated Puerto Rico's economy until the middle of the 20th century.¹⁸ Although rum is still produced, sugar cane production had ceased in Puerto Rico until a recent government program reintroduced it,^19,20,21 and agriculture is a relatively small part of the economy now. Manufacturing has led the private sector,²² with industries that include pharmaceuticals and medical devices, electronics, aviation, and renewable energy, but the manufacturing sector has contracted since 2000.^23,24,25,26 Employment in the commonwealth government has fallen, but the government still employs one in five workers.²⁷ In 2016, with the commonwealth facing more than $100 billion in debts and unfunded liabilities, Congress established a financial oversight board, a process for debt restructuring, and other provisions to stabilize Puerto Rico's economy.^28,29,30,31

On average, the commonwealth's residents use much less energy than is used by consumers in the 50 U.S. states. Puerto Rico's energy consumption per capita in recent years has been about one-third of the states' per capita consumption, and its energy intensity—the energy expended per dollar of gross domestic product (GDP)—is less than two-thirds of the states' energy intensity.^32,33,34

Petroleum

A 2013 U.S. Geological Survey assessment identified the potential for undiscovered crude oil resources in a subsea formation south of the islands,³⁵ but Puerto Rico has no proved petroleum reserves and neither produces nor refines crude oil. About three-fourths of the energy used in Puerto Rico comes from petroleum products,^36,37 which are all imported, principally through the ports of San Juan, Guayanilla, and Ponce.^38,39 The last of Puerto Rico's five petroleum refineries, located at Yabucoa, was shut down in 2009,⁴⁰ joining four other island refineries that were closed between 1992 and 2005.⁴¹ Storage and shipping facilities on the Yabucoa site continue to be used as a refined products terminal.⁴²

More than nine-tenths of Puerto Rico's petroleum imports are residual fuel, motor gasoline, and distillate fuel that serve the commonwealth's electric power and transportation sectors.⁴³ Puerto Rico allows use of conventional motor gasoline,^44,45 which makes up more than one-third of annual petroleum product imports. About 40% of Puerto Rico's electricity generating capacity is fired with No. 6 residual fuel oil and 30% with No. 2 diesel fuel.⁴⁶ To reduce both costs of and emissions from petroleum fuels, the commonwealth's electric utility, the Puerto Rico Electric Power Authority (PREPA; in Spanish, Autoridad de Energía Eléctrica, or AEE), has planned to substitute propane or natural gas to fuel several generating plants.⁴⁷ However, the relatively low price of crude oil in 2015 and 2016, combined with PREPA's bankruptcy in 2017,⁴⁸ have slowed conversion planning.^49,50,51 Other petroleum products imported include jet fuel and small amounts of propane.⁵² Despite the commonwealth's low per capita total energy consumption, Puerto Rico's per capita consumption of petroleum is about three-fourths of the average for the 50 states,^53,54 primarily because of the commonwealth's dependence on residual fuel oil and diesel fuel for half of the islands' electricity.⁵⁵

Natural gas

The 2013 U.S. Geological Survey assessment also identified the potential for undiscovered natural gas resources in a subsea formation south of Puerto Rico, but the commonwealth has no proved natural gas reserves and does not produce natural gas.⁵⁶ Nearly all natural gas is imported as liquefied natural gas (LNG) through the Peñuelas terminal and regasification facility at Guayanilla Bay on the southwestern coast.^57,58,59 The facility was built to supply the adjacent 507-megawatt EcoEléctrica electricity generating plant.⁶⁰ LNG is imported almost exclusively from Trinidad and Tobago.^61,62 Beginning in 2012, LNG imports through Peñuelas increased to support PREPA's conversion of the nearby oil-fired Costa Sur (South Coast) generating station to dual-fuel capability with natural gas.^63,64 In August 2017, the U.S. Federal Energy Regulatory Commission (FERC) approved expansion of the Peñuelas regasification capacity so it could meet all of Costa Sur's natural gas needs.⁶⁵ Small amounts of LNG from the U.S. mainland also enter Puerto Rico in standardized cryogenic containers to supply fuel to some industrial customers,^66,67,68 but otherwise natural gas is consumed only in electricity production. Puerto Rico's typical per capita natural gas consumption is about one-fifth of the average in the 50 states.^69,70,71 LNG imports dropped by one-fourth in 2017 from 2016, in part because of the damage done to Puerto Rico's electrical grid in September 2017 by hurricanes.⁷² FERC has approved a truck-loading facility at the Peñuelas terminal so that LNG could also be used in transportation, but that facility is still in the planning stage.^73,74

PREPA has long planned to add more natural gas-fired generating capability.^75,76 PREPA plans originally called for a pipeline to take natural gas from the Peñuelas terminal to the north coast, where three PREPA oil-fired generating stations are located.⁷⁷ But public opposition arose to routing the pipeline through Puerto Rico's rugged central mountains,^78,79 and the plan was dropped in 2012 after officials found the terminal could not handle all of PREPA's expected natural gas needs.⁸⁰ PREPA subsequently contracted for installation of a floating terminal with regasification capability four miles offshore from the Aguirre generating station on the southern coast.⁸¹ FERC approved the facility in 2015,⁸² and PREPA has pursued permits and negotiated financial arrangements since, but the process has stalled with PREPA's financial problems.^{83,84,85,86,87} PREPA is also considering the feasibility of transporting natural gas by pipeline from the Aguirre terminal to its north coast generating plants, building a second LNG regasification and storage terminal on the north coast, or fueling some smaller peaking generators with LNG imported in cryogenic containers.⁸⁸

Coal

Puerto Rico has no coal resources and produces no coal.⁸⁹ The commonwealth has one coal-fired electricity generating plant, at Guayama.^90,91 The plant uses circulating fluidized-bed combustion and began operation in 2002. Typically, about 1.6 million short tons of coal are imported annually from Colombia to supply the 454-megawatt plant.⁹² In 2017, coal deliveries were 30% lower than in 2016 after Hurricane Maria damaged the generating plant and transmission grid. The plant resumed supplying generation in February 2018.^93,94,95 Ash from coal combustion is recycled on site into a partially solidified aggregate that is used in asphalt and concrete for road construction and other applications.^96,97,98 The commonwealth's per capita coal consumption is typically about one-fifth of per capita coal consumption in the 50 states.^99,100,101

Electricity

Puerto Rico's electricity is supplied by PREPA, a government agency that owns the electricity transmission and distribution systems for the main island, Vieques, and Culebra, as well as 85% of the electricity generating capacity.^102,103,104 PREPA was founded in the 1920s as a government irrigation system, but its responsibilities grew over the years to encompass island electrification.^105,106 PREPA serves about the same number of customers as the Los Angeles Department of Water and Power, the largest municipal utility in the continental U.S.¹⁰⁷ Until 2012, Puerto Rico obtained two-thirds of its electricity from petroleum, generated mainly at six PREPA stations with steam turbines, combustion turbines, combined cycle technology, or some combination of the three. The other one-third of PREPA's power supply was almost evenly divided between natural gas and coal generation, provided by two independent power producers, plus a small fraction from hydroelectric generators.^108,109 In 2012, natural gas firing capability was added to PREPA's Costa Sur petroleum-fired generating station in Guayanilla.¹¹⁰

For the fiscal year ending in June 2017, petroleum supplied just under half of the island's electricity, and natural gas supplied nearly one-third. Coal continued to supply about one-sixth of electricity, while renewables supplied about 2.4%.¹¹¹ PREPA's electricity generators were 28 years older than the U.S. average and experienced outage rates 12 times higher than the U.S. average.¹¹² In September 2017, Hurricanes Irma and Maria, hitting two weeks apart, destroyed much of Puerto Rico's electricity transmission and distribution infrastructure.^113,114,115 In general, generating facilities were not as badly damaged as the transmission system,^116,117 but PREPA's largest generating plants are in the south while the largest population concentrations are in the north, making the system dependent on its 2,400 miles of transmission and 30,000 miles of distribution lines.^118,119 Many customers were without power for months; in December 2017, PREPA supplied less than half as much power to residential and commercial customers as it did in December 2016.¹²⁰ At the end of May 2018, though most customers had power restored, the electric utility still had 11,000 of its nearly 1.5 million customers without electricity.^121,122,123 With the widespread loss of grid connections, electricity generation dropped by 60% in the last three months of calendar 2017 from the same period in 2016. Generation in this period came almost exclusively from facilities fueled by petroleum and natural gas. During 2018, coal, wind, solar, biomass, and hydroelectric power facilities were gradually brought back on line as transmission and distribution lines were restored,¹²⁴ though some generating facilities are not expected to be in service before 2019.¹²⁵

The commercial sector consumes nearly half of PREPA's retail electricity, and the residential sector consumes more than one-third. The industrial sector, including agriculture, accounts for just over one-eighth of consumption, with the balance consumed for public uses like street lighting.¹²⁶ Per capita, Puerto Rico's electricity consumption is typically a little more than two-fifths of the average in the 50 states.^127,128 In the last decade, high world petroleum prices have driven Puerto Rican power prices as high as three times the U.S. states' average retail price.¹²⁹ In 2015 and 2016, PREPA electricity rates declined along with international petroleum prices, but, at the end of 2017, PREPA rates, which vary monthly with fuel and purchased power costs, still averaged higher than rates in 48 of the 50 states.^130,131 Only Hawaii and Alaska had higher average rates.¹³²

After the damage wreaked on the electrical system by Hurricane Maria, PREPA is evaluating additional options for grid resilience, such as measures to make key grid infrastructure more resistant to storms and deployment of microgrids.^133,134 To reduce fuel costs, PREPA has planned to add natural gas capability at its largest generating stations,¹³⁵ but conversions beyond Costa Sur depend on construction of LNG import terminals and natural gas distribution infrastructure.¹³⁶ Plans are under way for conversion of PREPA's largest generating station, Aguirre, to use LNG supplied from a floating off-shore terminal.^137,138 PREPA is considering a variety of alternative fuel and supply options to reduce costs and emissions at its two large San Juan-area plants, San Juan and Palo Seco, as well as options for its diesel-fueled turbines at Cambalache and Mayagüez.^139,140 Decisions on PREPA's future directions are awaiting PREPA's bankruptcy reorganization, which has been complicated by the need to recover from Hurricane Maria,¹⁴¹ as well as proposed privatization of the government-owned utility^142,143,144 and resolution of its regulatory relationship with the Puerto Rico Energy Commission (PREC) , which sets wholesale and retail electricity rates.^145,146 In 2018, the Puerto Rico legislature approved privatizing at least part of PREPA, but issues such as which portions can be sold off and under what conditions were still being resolved.^{147,148,149,150,151,152,153}

Renewable energy

Puerto Rico has renewable resources from wind, rivers, and the sun and is home to both the largest solar photovoltaic (PV) facility and the largest wind farm in the Caribbean.^154,155 In fiscal year 2016-17, ending June 30, 2017, about 2.4% of PREPA's electricity came from renewable energy sources, with two-fifths of that from wind and nearly as much from solar. The rest came from hydroelectric and landfill gas facilities. In the first six months of 2017, solar generation exceeded wind generation as new solar facilities ramped up production and regional wind speeds declined.^156,157,158 Most renewable generating facilities survived Hurricane Maria with modest amounts of damage, but two facilities on Puerto Rico's east coast, where the eye of the storm came ashore, were badly damaged. They were Puerto Rico's second largest solar farm at Humacao, which had begun generation only in December 2016, and the second largest wind farm at Naguabo.^{159,160,161,162,163,164} However, none of the island's renewable facilities were able to connect to the devastated grid until November 2017. Small amounts of hydroelectric and solar power restarted in late 2017, but no wind power was reconnected until February 2018, and landfill gas generation restarted only in April.¹⁶⁵

Solar power has been Puerto Rico's fastest growing renewable resource.¹⁶⁶ In 2014, Puerto Rico's legislature passed Law 57, which required PREPA to expedite connections for distributed (customer-sited, small-scale) generation.¹⁶⁷ In June 2017, three-fourths of Puerto Rico's solar generation came from utility-scale facilities and one-fourth from distributed solar panels on the islands' homes and businesses.¹⁶⁸ The largest solar farm, the Oriana facility at Isabela, has 45 megawatts of capacity and came into service in late 2016, as did the first 20 megawatts of a 40-megawatt solar facility at Humacao. PREPA's solar generation doubled in the six months from October 2016 to April 2017.^169,170,171 As of June 2017, Puerto Rico had 5 utility-scale solar farms in full operation, 1 partially commercial and partially preoperational, and another in preoperational testing, plus 14 more solar projects in negotiations with PREPA. In addition, there were more than 8,500 customers with nearly 88 megawatts of distributed capacity connected with net metering. Ten of those distributed facilities have 1 megawatt or more of capacity; they power water filtration plants, manufacturing operations, and two U.S. military installations.^172,173 From June 2016 to June 2017, net generation from distributed facilities rose by nearly three-fifths.^174,175 Puerto Rico also requires solar hot water heaters in all new single-family housing units.¹⁷⁶ The commonwealth used funds from the American Recovery and Reinvestment Act for a weatherization assistance program that installed more than 11,000 solar hot water heaters in existing homes.¹⁷⁷

Puerto Rico has two utility-scale wind farms. The 23-megawatt facility at Naguabo and the first phase of the 101-megawatt facility at Santa Isabel both began service in 2012.^178,179 Other wind projects have been proposed, but Puerto Rico's onshore wind resource is limited, and proposed sites have faced local opposition.^{180,181,182,183} The commonwealth has some offshore wind resources but limited areas where the sea is shallow enough to accommodate wind turbines.¹⁸⁴

Puerto Rico's 21 hydroelectric generating units, which were built beginning in 1915, are sited on reservoirs that often supply drinking and irrigation water as well as electricity.^{185,186,187,188} In addition to typical generation variability due to rainfall, competing water uses and turbine and reservoir maintenance can also impact output from Puerto Rico's hydroelectric facilities, often leading to far less use for electricity generation than most hydroelectric plants in the continental U.S.¹⁸⁹ In the last four years, they have supplied on average about one-sixth of Puerto Rico's renewable electricity. Two generators using landfill gas are located at Fajardo and Toa Baja. Fajardo began generating electricity in late 2015 and is in commercial operation. Toa Baja is still in startup.¹⁹⁰ Biomass electricity output more than doubled in the first nine months of 2017 compared to the same period in 2016, producing 3% of Puerto Rico's renewable electricity.^191,192 PREPA has encouraged development of municipal solid waste, landfill gas, and other waste-to-energy facilities, but proposed facilities have faced local opposition,^{193,194,195,196} and only one proposal is still active with PREPA.¹⁹⁷ Moreover, many of the island's landfills violate federal standards and their situation has been made more difficult by the wastes from hurricane cleanup.^198,199 For the longer term, Puerto Rico has explored the use of biofuels, primarily those derived from agricultural wastes, and technologies that could harvest energy from the waves, currents, and ocean depths surrounding the islands. ^200,201

In 2010, Puerto Rico's legislature enacted a renewable portfolio standard (RPS) that required PREPA to obtain 12% of its electricity from renewable sources starting in 2015, scaling up to 15% by 2020 and 20% by 2035.²⁰² The 2015 goal was not met. From 2008 to 2012, PREPA signed 68 long-term power purchase agreements with solar, wind, and biomass energy developers for about 1,600 megawatts of renewable capacity. Of those, 11 contracted projects have been built, 10 were canceled, and 47 contracts are inactive or in renegotiation.²⁰³ In 2014, PREPA renegotiated some contracts to require energy storage equal to 30% of project capacity to increase grid stability.^204,205 Three of Puerto Rico's five solar farms incorporate batteries that are charged during daylight hours and supply the grid overnight.^{206,207,208,209} As part of of an ongoing integrated resource planning (IRP) process, PREPA and the PREC have been discussing future RPS goals and how they can be met.^210,211,212

Endnotes

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² Autoridad de Energía Eléctrica, Informe Mensual de Indicadores Principales (Junio 2017), p. 3-4.
³ Autoridad de Energía Eléctrica, indicadores.pr, Generación, consumo, costo, ingresos y clientes del sistema eléctrico de Puerto Rico, Mes 04/01/2018.
⁴ National Renewable Energy Laboratory, Energy Transition Initiative, Energy Snapshot, Puerto Rico (March 2015), p. 1.
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⁶ U.S. Geological Survey, Caribbean Water Science Center: Puerto Rico Hydroelectric-Power Water Use, updated December 12, 2012.
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⁸ Staletovich, Jenny, "Final Numbers on Maria in Puerto Rico: $90 Billion in Damage, Some Cat 5 Winds," Miami Herald (April 9, 2018)
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Other Resources

Energy-Related Regions and Organizations

• Petroleum Administration for Defense District (PADD): 6

Other Websites

• Puerto Rico Energy Commission
• Comision de Energia de Puerto Rico, Seccion de Datos y Estadisticas
• Puerto Rico Energy Commission, Data and Statistics
• Puerto Rico Electric Power Authority
• Autoridad de Energia Electrica
• Autoridad de Energia Electrica, Ley 57 del Ano 2014, Estadisticos
• Financial Oversight & Management Board for Puerto Rico
• Oficina Estatal de Politica Publica Energetica
• Comision de Servicio Publico
• Green Energy Fund, Fondo de Energia Verde
• Weatherization/Programa de Asistencia de Climatizacion de Hogares
• Department of Natural Resources and Environment/Departmento de Recursos Naturales y Ambientales
• Family Socioeconomic Development Administration/Administracion de Desarrollo Socioeconomico de la Familia
• Puerto Rico Infrastructure Financing Authority
• NC Clean Technology Center, Database of State Incentives for Renewables and Efficiency (DSIRE)
• National Association of Regulatory Utility Commissioners (NARUC)
• National Association of State Energy Officials (NASEO)
• National Conference of State Legislatures (NCSL), Energy
• National Renewable Energy Laboratory (NREL)-Geospatial Data Science
• U.S. Geological Survey (USGS), Publications
• U.S. Bureau of Ocean Energy Management
• United States Department of Health and Human Services, Administration for Children and Families, Office of Community Services, Low Income Home Energy Assistance Program

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