Puerto Rico Territory Energy Profile

Puerto Rico Quick Facts

In September 2017, Hurricanes Irma and Maria made landfall two weeks apart and destroyed much of Puerto Rico’s electricity transmission and distribution infrastructure.
Almost three-fourths of the energy used in Puerto Rico comes from petroleum products, which are all imported.
For fiscal year 2020, petroleum-fired power plants generated almost half of the island’s total electricity, imported natural gas 29%, coal 19%, and renewables 2.5%.
A 6.4 magnitude earthquake, and subsequent aftershocks, that struck Pureto Rico in January 2020 left two-thirds of the Commonwealth's residents without power. The earthquakes significantly damaged the island’s two natural gas-fired power plants.
Under the Puerto Rico Energy Public Policy Act, which was signed into law in May 2019, PREPA has to obtain 40% of its electricity from renewable resources by 2025, 60% by 2040, and 100% by 2050. PREPA is also mandated to phase out coal-fired generation by 2028.

Last Updated: November 19, 2020

Data

Last Update: July 15, 2021 | Next Update: August 19, 2021

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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	20.00 cents/kWh	13.76 cents/kWh	Apr-21
Commercial	23.39 cents/kWh	10.99 cents/kWh	Apr-21
Industrial	16.86 cents/kWh	6.77 cents/kWh	Apr-21

Reserves
Reserves	Puerto Rico	United States	Period
Crude Oil	0 billion barrels	42 billion barrels	2019
Natural Gas	0 trillion cu ft	4,656 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	1,114 million kW	2018

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	69 billion cu ft	2,742 billion cu ft	2019
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	4,656 billion cu ft	2019
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	18 billion kWh	4,208 billion kWh	2018
Petroleum, Natural Gas, and Coal Net Electricity Generation	17 billion kWh	2,657 billion kWh	2018
Total Electricity Generation from Renewable Sources	1 billion kWh	749 billion kWh	2018
» Hydroelectric	*	293 billion kWh	2018
» Other Renewables	1 billion kWh	457 billion kWh	2018

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	69 billion cu ft	31,099 billion cu ft	2019
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	3 million metric tons	1,639 million metric tons	2018
Coal	3 million metric tons	1,260 million metric tons	2018

Analysis

Last Updated: November 19, 2020

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 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

The 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, as well as small, uninhabited islands scattered around the main island.³

Puerto Rico has coastal plains, sandy beaches, and a forested and mountainous interior, with the highest peak exceeding 4,000 feet.⁴ 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.⁵ 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.^6,7

Previously unknown undersea faults on the south side of Puerto Rico triggered a sequence of earthquakes that began in December 2019.^8,9 This culminated in a 6.4 magnitude earthquake in January 2020, which significantly damaged infrastructure on the island and led to power outages.¹⁰ This earthquake was followed by numerous aftershocks, of which the largest was a 5.4 magnitude earthquake on May 2, 2020.^11,12 The earthquake and aftershocks left two-thirds of Puerto Rico's residents without power and significantly damaged the island's two largest power plants.^13,14 The U.S. Geological Survey estimates that aftershocks could continue for years.¹⁵

The Commonwealth's population reached 3.8 million in 2000, but has declined over the past two decades.¹⁶ Puerto Ricans are U.S. citizens, and some have chosen to move to the U.S. mainland, in part because of an ongoing recession that began in 2006.¹⁷ The Commonwealth's population has declined by 14%, or more than 520,000 people, since 2010, and about 133,500 left the island in 2018 after Hurricane Maria.¹⁸ This migration trend is complicating Puerto Rico's economic situation and recovery efforts.¹⁹

Agriculture, mainly sugar cane, dominated Puerto Rico's economy until the 1960s.²⁰ Today, agriculture, including the production of coffee, pineapples, plantains, bananas, and livestock, is a relatively small part of the Puerto Rican economy.^21,22,23 Private sector investment has been concentrated in the manufacturing sector, especially in pharmaceuticals and medical devices, electronics, aviation, information technology, and renewable energy.^24,25 However, as federal tax incentives were phased out in 1996, investments in the manufacturing sector began contracting.^26,27 Employment in the Commonwealth government has declined since 2009, but the public sector still employs one in five workers.²⁸ 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.^29,30

Energy use per capita is typically one-third as much in Puerto Rico as it is in the 50 U.S. states.

On average, the Commonwealth's residents use much less energy than is used by consumers in the 50 U.S. states.^31,32 Puerto Rico's energy consumption per capita in recent years has been about one-third of the states' level.³³ However, consumers in Puerto Rico pay among the highest U.S. electricity rates.^34,35

Electricity

In recent years, Puerto Rico’s public electric utility has served more customers than any other public electric utility in the United States.

Puerto Rico's electricity is supplied by the Puerto Rico Electric Power Authority (PREPA, also known as Autoridad de Energía Eléctrica, or AEE), a government agency that owns the electricity transmission and distribution systems for the main island, Vieques, and Culebra, as well as 80% of the electricity generating capacity.³⁶ Founded in the 1920s as a water resource agency, PREPA's responsibilities grew over the years to encompass island electrification.³⁷ In recent years, it has served more customers than any other public electric utility in the United States.³⁸ Until 2012, petroleum-fired generation provided about two-thirds of Puerto Rico's electricity. The other one-third of PREPA's power supply was almost evenly divided between natural gas and coal-fired generation, provided by two independent power producers, plus a small amount of electricity supplied from hydroelectric generators.³⁹

For fiscal year 2020, which runs from June to July, petroleum-fired power plants generated almost half of the island's total electricity and imported natural gas 29%. Coal continued to fuel 19% of generation, while renewables supplied 2.5%.⁴⁰ In September 2017, Hurricanes Irma and Maria made landfall two weeks apart and destroyed much of Puerto Rico's electricity transmission and distribution infrastructure.⁴¹ In general, 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.^42,43 To make Puerto Rico's electricity grid more resilient to future storms, PREPA is considering establishing mini- and micro-grids, adding more renewable power generation and increasing battery storage capacity. These targets are outlined in PREPA's Integrated Resource Plan, which was approved by the Puerto Rico Energy Bureau in August 2020.⁴⁴

The 6.4 magnitude earthquake that hit Puerto Rico in 2020 significantly damaged the island's two largest power plants, Costa Sur and EcoEléctrica.⁴⁵ 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 Costa Sur was the largest power plant in Puerto Rico. It generated 21% of the island's power and represented 52% of its natural gas-fired electricity generation.⁴⁶ In the first six months of 2020, petroleum accounted for 59% of generation, compared to 35% during the same period in 2019. Natural gas-fired generation had fallen to 20% of total generation compared to 43%. Coal, renewables, and other generation sources remained relatively unchanged.⁴⁷ Additionally, two petroleum plants that normally provide only peak load generation, Cambalache and Mayagüez, significantly increased their generation in the first three months of 2020 to meet demand.⁴⁸

The commercial sector consumes nearly half of the island's electricity, and the residential sector accounts for two-fifths, with the remainder consumed by the industrial sector.⁴⁹ Puerto Rico's total electricity consumption is typically less than 1% of the U.S. total.^50,51 PREPA's heavy reliance on petroleum means that Puerto Rican power prices fluctuate along with international petroleum prices and vary monthly with fuel and purchased power costs.⁵² In 2019, Puerto Rico's average price of electricity for residential use was higher than rates in 45 of the 50 states.^53,54

PREPA had to not only re-build its electricity infrastructure after the hurricanes, but also had to restructure its business after operating in bankruptcy protection since 2017.⁵⁵ As part of the restructuring plan, the Puerto Rico legislature approved privatizing parts of PREPA in 2018.⁵⁶ Under the plan, the utility is expected to sell off some of its generation assets and privatize its electricity transmission and distribution system. ⁵⁷ In June 2020, PREPA chose a private company, LUMA Energy, to operate its electricity transmission and distribution system.⁵⁸ In August 2020, the Puerto Rico Energy Bureau (PREB) issued its final resolution on PREPA's Integrated Resource Plan.⁵⁹ The plan, together with the Puerto Rico Energy Public Policy Act of 2019, outlines numerous energy mandates, including that 100% of the island's power must be generated from renewable resources by 2050 and that coal-fired generation must be phased out by 2028.^60,61

Petroleum

A recent U.S. Geological Survey assessment identified the potential for undiscovered crude oil resources in a subsea formation south of the island, but Puerto Rico has no proved crude oil reserves. The island currently neither produces nor refines crude oil.⁶² About three-fourths of the energy used in Puerto Rico comes from petroleum products, which are all imported, principally through the ports of San Juan, Guayanilla, and Ponce. ^63,64 The last of Puerto Rico's five petroleum refineries, located at Yabucoa, was shut down in 2009, joining four other island refineries that were closed between 1992 and 2005.⁶⁵ However, storage and shipping facilities on the Yabucoa site continue to be used as a refined products terminal.⁶⁶

More than nine-tenths of Puerto Rico's petroleum imports are motor gasoline, distillate fuel oil, and residual fuel oil that are consumed by the Commonwealth's electric power and transportation sectors.⁶⁷ Puerto Rico allows use of conventional motor gasoline, which makes up more than one-third of annual petroleum product imports.⁶⁸ Other petroleum products imported include jet fuel and small amounts of liquefied petroleum gases and kerosene.⁶⁹ Puerto Rico's per capita consumption of petroleum is about half of the average for the 50 states. ^70,71

For fiscal year 2020, almost half of Puerto Rico's total electricity generating capacity was fired by petroleum products.⁷² This is a significant increase from 40% the previous fiscal year, due to the earthquake damage of the two main gas-fired generation plants in January 2020. In the short-term the Commonwealth's electric utility, PREPA, will have to rely more heavily on petroleum products for power generation.⁷³

Natural gas

The 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.⁷⁴ Nearly all natural gas is imported as liquefied natural gas (LNG) through the Peñuelas terminal in Ponce and regasification facility at Guayanilla Bay on the southwestern coast and used solely for electricity generation.^75,76,77 The regasification facility was built to supply the adjacent 507-megawatt EcoEléctrica electricity generating plant.⁷⁸ LNG is imported mostly from Trinidad and Tobago.⁷⁹ Beginning in 2012, LNG imports through Peñuelas increased to support PREPA's conversion of the nearby oil-fired Costa Sur generating station to dual-fuel capability with natural gas and more recently, the conversion of the San Juan oil-fired generating station to natural gas.^80,81 Small amounts of LNG from the U.S. mainland are also shipped to Puerto Rico to supply fuel to some industrial customers and meet ship re-fueling needs.^82,83 Puerto Rico's typical per capita natural gas consumption is about one-fifth of the average in the 50 states.^84,85,86

PREPA has long planned to add more natural gas-fired electric generating capacity and in June 2020, completed the conversion of the San Juan generating units 5 and 6 from diesel to natural gas. ^87,88 However, the Integrated Resource Plan approved by PREB in August 2020 presses for faster adoption of more renewable energy rather than support of new natural gas projects.⁸⁹

Coal

Puerto Rico is mandated by its Energy Public Policy Act to phase out coal-fired electricity generation by 2028.

Puerto Rico has no coal reserves and produces no coal.⁹⁰ The Commonwealth has one coal-fired electricity generating plant, at Guayama, which began operations in 2002.⁹¹ Typically, about 1.6 million tons of coal are imported annually from Colombia to supply the 454-megawatt plant.^92,93 However, after the hurricanes in 2017, coal imports declined by one-third. In 2019, Puerto Rico's coal imports increased by one-third to 1.7 million tons, which is about the pre-hurricane level.⁹⁴ 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.⁹⁵ The Commonwealth's per capita coal consumption is typically about one-fifth of per capita coal consumption in the 50 states.^96,97,98 The Puerto Rico Energy Public Policy Act mandates the phasing out of coal-fired electricity generation by 2028.⁹⁹

Renewable energy

Puerto Rico is home to both the largest wind farm and the second largest solar photovoltaic farm in the Caribbean.

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 2050.¹⁰⁰ The island's renewable resources include wind, hydropower, and solar energy. For fiscal year 2020, 2.5% of PREPA's electricity came from renewable energy, with solar photovoltaic (PV) accounting for half and wind accounting for one-third of total renewable generation. The remainder came from hydroelectric and landfill gas facilities.¹⁰¹ Puerto Rico is home to the largest wind farm and the second largest solar PV facility in the Caribbean.^102,103

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.^104,105 The solar PV farm has since been rebuilt, but according to PREPA, as of May 2020, the Punta Lima wind farm remained non-operational.^106,107 The earthquakes in early 2020 did not damage any renewable generating facilities. The solar micro grids using rooftop solar panels that 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.¹⁰⁸

Solar power has been 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 2020.¹⁰⁹ The largest solar farm, the 57-megawatt Oriana facility came online in late 2016 and almost doubled PREPA's solar generating capacity.¹¹⁰ By the end of 2019, PREPA had signed 64 power purchase and operating agreements (PPOAs) with renewable generation, of which 7 were in commercial operation, with a total capacity of more than 260 megawatts. PREPA is negotiating with developers about 16 additional solar energy projects.¹¹¹ PREPA also plans to add up to 2,740 megawatts of solar power and 1,440 megawatts of battery storage by 2025.¹¹² Additionally, the Puerto Rico Energy Public Policy Act will facilitate net metering of small-scale solar power generation.¹¹³

Puerto Rico currently has one operational utility-scale wind farm, the 75-megawatt Santa Isabel facility on the southern coast, which started up in 2012.¹¹⁴ Other wind projects have been proposed, but Puerto Rico's onshore wind resource is limited.¹¹⁵

Puerto Rico's 19 hydroelectric generating units, some of which are more than 100 years old, are sited on reservoirs that often supply drinking and irrigation water as well as electricity.^116,117 Electricity 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 revitalize these facilities as part of its efforts to increase the use of renewable energy.^118,119

In the past, PREPA has encouraged development of municipal solid waste, landfill gas, and other waste-to-energy facilities, but proposed facilities have faced local opposition and been cancelled.¹²⁰ Two landfill gas facilities, located at Fajardo and Toa Baja, have a combined capacity of 6.4 megawatts and began generating electricity in 2016.¹²¹ However, many of the island's landfills cannot be used for electricity generation because they violate federal standards and the Environmental Protection Agency has ordered some of them to close.¹²²

Endnotes

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³ U.S. Census Bureau, 2010 Census, Puerto Rico Profile, accessed October 6, 2020.
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¹⁴ Autoridad de Energía Eléctrica, 2020 Fiscal Plan for the Puerto Rico Electric Power Authority, As certified by the Financial Oversight and Management Board for Puerto Rico on June 29, 2020, p. 25-26.
¹⁵ U.S. Geological Survey, "USGS Scientists Find Seafloor Faults Near Puerto Rico Quakes' Epicenters," (May 26, 2020).
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⁵⁷ Autoridad de Energía Eléctrica, 2020 Fiscal Plan for the Puerto Rico Electric Power Authority, As certified by the Financial Oversight and Management Board for Puerto Rico on June 29, 2020, p. 29-30.
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⁶⁴ U.S. National Oceanic and Atmospheric Administration, Puerto Rico, Coast Pilot 5, Chapter 13, Edition 48, 2020.
⁶⁵ U.S. EIA, Refinery Capacity 2020, Table 13, Refineries Permanently Shutdown By PAD District Between January 1, 1991 and January 1, 2020, PAD District VI.
⁶⁶ Buckeye Global Marine Terminals, Buckeye Yabucoa Terminal, accessed October 19, 2020.
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⁶⁸ U.S. Environmental Protection Agency, Fuels, Registration, Reporting, and Compliance Help, accessed October 19, 2020.
⁶⁹ U.S. EIA, International Energy Statistics, Petroleum and Other Liquids, Puerto Rico, Data for 2017.
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⁷¹ U.S. Census Bureau, State Population Totals and Components of Change: 2010-2019, Annual Estimates of the Resident Population for the United States, Regions, States, and Puerto Rico: April 1, 2010 to July 1, 2019 (NST-EST2019-01), accessed October 19, 2020.
⁷² Autoridad de Energía Eléctrica, indicadores.pr, Generación, consumo, costo, ingresos y clientes del sistema eléctrico de Puerto Rico (Generation, consumption, cost, income and customers of the Puerto Rico electrical system), updated September 21, 2020.
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⁷⁴ 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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⁷⁷ U.S. EIA, Today in Energy, Puerto Rico's LNG imports returned to pre-Hurricane Maria levels in late 2018, (April 8, 2019).
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