Puerto Rico Territory Energy Profile

Puerto Rico Quick Facts

Puerto Rico consumes about 27 times more energy than it produces, and the Commonwealth's energy consumption per capita is roughly one-third of the average in the 50 U.S. states.
Puerto Rico imports all of its petroleum, and the transportation and electric power sectors use about 90% of it.
Petroleum products account for about two-thirds of Puerto Rico's total energy consumption. However, the island's per capita petroleum consumption is about half the U.S. average.
For fiscal year 2021, natural gas-fired power plants generated 44% of the island’s total electricity, petroleum 37%, coal 17%, and renewables 3%.
The Puerto Rico Energy Public Policy Act mandates that the Commonwealth obtain 40% of its electricity from renewable resources by 2025, 60% by 2040, and 100% by 2050. The law also phases out coal-fired generation by 2028.

Last Updated: December 16, 2021

Data

Last Update: January 20, 2022 | Next Update: February 17, 2022

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Economy
Population and Industry	Puerto Rico	United States	Period
Population	3.0 million	328.2 million	2019
Gross Domestic Product	$ 66 billion	$ 19,552 billion	2018

Prices
Electricity	Puerto Rico	United States	Period
Residential	22.64 cents/kWh	14.11 cents/kWh	Oct-21
Commercial	33.16 cents/kWh	11.56 cents/kWh	Oct-21
Industrial	25.65 cents/kWh	7.53 cents/kWh	Oct-21

Reserves
Reserves	Puerto Rico	United States	Period
Crude Oil	0 billion barrels	42 billion barrels	2019
Natural Gas	0 trillion cu ft	465 trillion cu ft	2020
Recoverable Coal	0 million short tons	252,057 million short tons	2019
Capacity	Puerto Rico	United States	Period
Total Electricity Installed Capacity	6 million kW	1,122 million kW	2019

Imports & Exports
Total Imports	Puerto Rico	United States	Period
Crude Oil Imports	0 thousand barrels/day	7,850 thousand barrels/day	2016
Natural Gas Imports	48 billion cu ft	2,551 billion cu ft	2020
Coal Imports	1,737 thousand short tons	6,697 thousand short tons	2019
Total Exports	Puerto Rico	United States	Period
Crude Oil Exports	0 thousand barrels/day	591 thousand barrels/day	2016
Natural Gas Exports	0 billion cu ft	5,284 billion cu ft	2020
Coal Exports	0 thousand short tons	93,765 thousand short tons	2019

Supply
Production	Puerto Rico	United States	Period
Total Energy	*	96 trillion Btu	2018
Crude Oil, NGPL, and Other Liquids	0 thousand barrels/day	17,936 thousand barrels/day	2020
Natural Gas - Gross	0 billion cu ft	32,915 billion cu ft	2015
Coal	0 thousand short tons	706,307 thousand short tons	2019
Total Utility-Scale Net Electricity Generation	Puerto Rico	United States	Period
Total Net Electricity Generation	20 billion kWh	4,163 billion kWh	2019
Petroleum, Natural Gas, and Coal Net Electricity Generation	17 billion kWh	2,582 billion kWh	2019
Total Electricity Generation from Renewable Sources	3 billion kWh	777 billion kWh	2019
» Hydroelectric	*	288 billion kWh	2019
» Other Renewables	3 billion kWh	489 billion kWh	2019

Consumption
by Source	Puerto Rico	United States	Period
Total Energy	*	101 trillion Btu	2018
Total Petroleum Products	97 thousand barrels/day	19,958 thousand barrels/day	2017
» Motor Gasoline	54 thousand barrels/day	9,327 thousand barrels/day	2017
» Distillate Fuel	22 thousand barrels/day	3,932 thousand barrels/day	2017
» Liquefied Refinery Gases	4 thousand barrels/day	1,299 thousand barrels/day	2017
» Jet Fuel	2 thousand barrels/day	1,682 thousand barrels/day	2017
» Kerosene	*	5 thousand barrels/day	2017
» Residual Fuel	14 thousand barrels/day	342 thousand barrels/day	2017
» Other Petroleum Products	1 thousand barrels/day	3,371 thousand barrels/day	2017
Natural Gas	48 billion cu ft	30,482 billion cu ft	2020
Coal	1,732 thousand short tons	588,415 thousand short tons	2019

Carbon Dioxide Emissions
by Source	Puerto Rico	United States	Period
Total Fossil Fuels	20 million metric tons	5,284 million metric tons	2018
Petroleum	14 million metric tons	2,385 million metric tons	2018
Natural Gas	4 million metric tons	1,686 million metric tons	2019
Coal	4 million metric tons	1,076 million metric tons	2019

Analysis

Last Updated: December 16, 2021

Overview

Puerto Rico consumes about 27 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 about 27 times more energy than it produces. Petroleum accounts for about two-thirds of the Commonwealth's total energy use, while natural gas accounts for one-fifth, coal for about one-tenth, and renewables account for the rest.⁴ Puerto Rico's energy consumption per capita is about one-third of that in the 50 U.S. states.⁵

Puerto Rico has coastal plains, sandy beaches, and a forested and mountainous interior, with the highest peak exceeding 4,000 feet.⁶ The mountains in the interior separate the main island into two distinct climate regions, the north being relatively humid and the south semi-arid. But overall, the island's tropical marine climate has little seasonal variation, and rain occurs year round.⁷ Because of its tropical climate nearly 9 out of 10 Puerto Rican households have no heating system.⁸ 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.^9,10

Previously unknown undersea faults on the south side of Puerto Rico triggered a sequence of earthquakes that began in December 2019.^11,12 This culminated in a 6.4 magnitude earthquake in January 2020, which significantly damaged infrastructure on the island and led to power outages.¹³ This earthquake was followed by numerous aftershocks, of which the largest was a 5.4 magnitude earthquake on May 2, 2020.^14,15 The earthquake and aftershocks left two-thirds of Puerto Rico's residents without power and significantly damaged the island's two largest power plants.^16,17 The U.S. Geological Survey estimates that aftershocks could continue for years.¹⁸

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.¹⁹ The Commonwealth's population reached 3.8 million in 2000, but declined since then, falling nearly 12% since 2010 to slightly under 3.3 million in 2020.²⁰ Puerto Ricans are U.S. citizens, and some have chosen to move to the U.S. mainland, in part because of an ongoing recession and natural disasters.²¹ About 133,500 people left the island in 2018 after Hurricane Maria hit.²² This migration trend complicates Puerto Rico's recovery efforts.²³

Agriculture, mainly sugar cane, dominated Puerto Rico's economy until the 1960s.²⁴ 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.^25,26,27 Private sector investment is concentrated in the manufacturing sector, especially in pharmaceuticals and medical devices, electronics, aviation, information technology, and renewable energy.^28,29 However, as federal tax incentives phased out in 1996, investments in the manufacturing sector have contracted.^30,31 Employment in the Commonwealth government has declined since 2009, but the public sector still employs about one in five workers.³² In 2016, with the Commonwealth facing more than $100 billion in debt and unfunded liabilities, 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.^33,34

Electricity

The Puerto Rico Electric Power Authority (PREPA, also known as Autoridad de Energía Eléctrica, or AEE) supplies Puerto Rico's electricity. PREPA is a government agency that owns the electricity transmission and distribution systems for the main island, Vieques, and Culebra, as well as about 86% (nearly 5,000 megawatts) of the installed electricity generating capacity.^35,36 Founded in the 1920s as a water resource agency, PREPA's responsibilities grew over the years to encompass island electrification.³⁷ 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 U.S. mainland utilities.³⁸

Fossil fuels provide about 97% of Puerto Rico’s electricity.

For fiscal year 2021 (July 2020 to June 2021), fossil fuel-fired power plants generated about 97% of Puerto Rico's electricity. Natural gas fueled about 44%, petroleum about 37%, and the island's one coal-fired power plant about 17%. Renewables accounted for about 3% of the island's electricity generation.³⁹

The commercial sector consumes nearly half of Puerto Rico's electricity sales, the residential sector accounts for two-fifths, and the industrial sector makes up about one-tenth. Puerto Rico's per capita electricity consumption is less than half that of the 50 states.^40,41,42 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.⁴³ In 2020, Puerto Rico's average electricity price was higher than in all but two U.S. states, Hawaii and Alaska.^44,45

Puerto Rico's electric power sector has suffered from decades of mismanagement and underinvestment and, most recently, natural disasters.⁴⁶ In September 2017, Hurricanes Irma and Maria made landfall two weeks apart and destroyed much of Puerto Rico's electricity transmission and distribution infrastructure.⁴⁷ 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 2,400 miles of transmission and 30,000 miles of distribution lines.^48,49

In early 2020, the 6.4 magnitude earthquake that hit Puerto Rico significantly damaged the island's two largest power plants, Costa Sur and EcoEléctrica.⁵⁰ 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. Costa Sur is the largest power plant in Puerto Rico, and represents 57% of the island's natural gas-fired electricity generating capacity.^51,52 After the hurricanes and earthquake, PREPA had to both re-build its electricity infrastructure and restructure its business, after operating in bankruptcy protection since 2017.⁵³ In 2018, as part of the restructuring plan, the Puerto Rico legislature approved privatizing parts of PREPA. Under the plan, a private entity will manage, operate, and maintain PREPA's generation assets and electricity transmission and distribution system. In June 2020, PREPA chose the private entity LUMA Energy, a group of U.S. and Canadian companies, to operate its electricity transmission and distribution system.⁵⁴ 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.^55,56 To assist in that effort, the Federal Emergency Management Agency (FEMA) provided more than $9.4 billion in funding to transform Puerto Rico's electrical system.⁵⁷

Petroleum

Puerto Rico has no crude oil production, refining, or proved reserves. However, a 2013 U.S. Geological Survey assessment identified potential undiscovered crude oil resources in a subsea formation south of the island.⁵⁸ Petroleum accounts for two-thirds of the energy used in Puerto Rico. The island imports all of its petroleum products, mostly through the ports of San Juan, Guayanilla, Ponce, and Yabucoa.^59,60 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 2005.⁶¹ However, over 4 million barrels of storage and shipping facilities at the Yabucoa site continue to be used as a crude oil and refined products terminal.⁶²

Motor gasoline, distillate fuel oil, and residual fuel oil account for nearly 9 out of 10 barrels of petroleum products imported by Puerto Rico and used by the Commonwealth's transportation and electric power sectors.⁶³ Petroleum generates about two-fifths of Puerto Rico's electricity and fuels more than 60% of the island's generating capacity.^64,65 Puerto Rico allows use of conventional motor gasoline without ethanol.⁶⁶ Other imported petroleum products consumed include jet fuel and liquefied petroleum gases. Puerto Rico's per capita consumption of petroleum is about half the average for the 50 states.^67,68,69

Natural gas

Puerto Rico does not produce natural gas and has no proved reserves. However, the 2013 U.S. Geological Survey assessment also identified possible undiscovered natural gas resources in a subsea formation south of the island.⁷⁰ 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.^71,72,73,74 The regasified LNG is used to fuel electricity generation at the 766-megawatt EcoEléctrica power plant, the 580-megawatt Costa Sur power plant, and the 440-megwatt San Juan power plant.^75,76 The imported LNG mostly comes from Trinidad and Tobago, with smaller shipments from the Dominican Republic, France, Algeria, and Norway.⁷⁷ Small amounts of LNG from the U.S. mainland are also shipped to Puerto Rico to supply fuel to industrial customers and container ships.^78,79

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.^80,81,82 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.^83,84 Puerto Rico's typical per capita natural gas consumption is about one-fifth of the average for the 50 states.^85,86

Coal

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

Puerto Rico has no coal reserves and produces no coal.⁸⁷ The Commonwealth has one coal-fired electricity generating plant, located at Guayama. The 454-megawatt plant began operations in 2001.⁸⁸ Puerto Rico consumed 1.5 million tons of coal in 2020, down about one-fifth from the year before. Almost all of it was bituminous coal to fuel the power plant.⁸⁹ The Puerto Rico Energy Public Policy Act mandates phasing out coal-fired electricity generation by 2028.^90,91

Renewable energy

Puerto Rico is home to some of the largest wind and solar power farms in the Caribbean.

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 from renewable resources by 2025, 60% by 2040, and 100% by 2050.⁹² For fiscal year 2021 (July 2020—June 2021) about 3% of PREPA's electricity came from renewable energy, with solar photovoltaics (PV) accounting for slightly more than half and wind power accounting for one-third of total renewable generation. The remainder came from hydroelectric and landfill gas-fueled facilities.⁹³ Puerto Rico is home to both the largest wind power farm and one of the largest solar power generating facilities in the Caribbean.^94,95,96,97

Most renewable generating facilities survived Hurricane Maria with modest amounts of damage, but a solar PV farm at Humacao and the Punta Lima wind farm at Naguabo—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, but the Punta Lima wind farm remains non-operational.^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 is Puerto Rico's fastest growing source of renewable generation, increasing from 0.3% of total generation in fiscal year 2015 to 1.4% in fiscal year 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. About 26 megawatts in new solar power and related storage battery capacity is scheduled to come online in 2022.^104,105 PREPA plans to add up to 2,740 megawatts of solar power generating capacity and 1,440 megawatts of battery storage by 2025.¹⁰⁶ Additionally, the Puerto Rico Energy Public Policy Act will facilitate net metering of small-scale solar power generation.¹⁰⁷

Puerto Rico currently has one operational utility-scale wind farm, the 75-megawatt Santa Isabel facility on the southern coast, which started generation in 2012. There is a smaller 0.6-megwatt wind turbine at the Fort Buchanan U.S. Army Garrison in San Juan.¹⁰⁸ Other wind projects have been proposed, but Puerto Rico's onshore wind resources are limited. The island has more offshore wind potential.¹⁰⁹

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.^110,111 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.^112,113

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 cancelled.¹¹⁴ Two landfill gas generating facilities, located at Fajardo and Toa Baja, have a combined capacity of 6.4 megawatts and began producing electricity in 2016 and 2020, respectively.¹¹⁵ 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.^116,117

Endnotes

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² Southern States Energy Board, Southern Regional Energy Profiles 2020, p. 68-69, accessed November 18, 2021.
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