At hearing, PREB chief stresses need to diversify energy mix

Puerto Rico Energy Bureau Chairman Edison Avilés Deliz said that between April and June of this year, more than 167,900 customers were to have connected solar energy systems, resulting in a total capacity of 1,217 megawatts. Looking ahead, he said, it is projected that an additional 600.1 megawatts of solar generation and 995 megawatts of battery systems for energy storage will be incorporated on the island by December 2027.

By THE STAR STAFF

The Puerto Rico Energy Bureau (PREB) on Thursday outlined the current and projected status of renewable and distributed energy projects as well as alternatives for reducing dependence on fossil fuels.

At a public hearing before the Senate Government Committee, chaired by Sen. Ángel Toledo López, the regulator also discussed the conditions surrounding the conversion of the island’s power generation plants to natural gas.

PREB Chairman Edison Avilés Deliz said that between April and June of this year, more than 167,900 customers were to have connected solar energy systems, resulting in a total capacity of 1,217 megawatts (MW). That capacity is in addition to the 270 MW produced by existing renewable energy projects, which include solar, wind and hydroelectric farms. Looking ahead, he said, it is projected that an additional 600.1 MW of solar generation and 995 MW of battery systems for energy storage will be incorporated by December 2027.

“In six to seven years, we hope to have replaced the entire old fleet with a new one,” he added.

By 2050, the goal is to achieve an energy system that relies on a mix of renewable generation methods.

Avilés Deliz emphasized that about 60% of electricity rates are linked to fuel prices, highlighting the necessity of diversifying the energy mix through renewable sources such as solar, wind, hydroelectric, geothermal and biomass. He stressed that those initiatives are crucial for reducing dependence on imported fuels, stabilizing rates and enhancing the island’s energy security.

Regarding the natural gas conversion process at the Mayagüez, Palo Seco and Cambalache power plants, the PREB chairman noted that while certain applications from Genera PR were conditionally approved, they required modifications due to noncompliance with the imposed conditions. He noted that the Jan. 31, 2025 approvals included the conversion of three units at Palo Seco and four at Mayagüez. Additionally, dual conversion of two units at Cambalache was authorized on July 4 of this year.

“The Bureau established safeguards and recommended procedures aimed at achieving more favorable natural gas prices, as the prices proposed at that time were substantially higher than those the Puerto Rico Electric Power Authority (PREPA) was paying to the same supplier for other units,” Avilés Deliz stated.

He cautioned that the prices proposed by New Fortress Energy (NFE) were between 28% and 40% higher than current PREPA contracts. Moreover, exclusive dependence on that supplier, which is affiliated with Genera, would expose Puerto Rico to monopoly risks and unfavorable contractual conditions, he added.

The PREB chairman also reiterated that it is the responsibility of PREPA and the Public-Private Partnerships Authority to report whether the procedures and conditions required for the conversions have been implemented. However, he pointed out that, after more than eight months of approvals, the PREB has yet to receive information about the results of the efforts undertaken by both entities.

The explanatory memorandum submitted to the committee highlighted recent incidents at the San Juan gas terminal, operated by NFE, and interruptions in gas supply to the Palo Seco and San Juan units, confirming the PREB’s warnings about the risks of relying on a single supplier. The agency noted that if the conversions had been carried out under the conditions proposed by Genera, the current crisis “would have been much greater.”