PREB rebukes LUMA & PREPA over delays in clean energy projects

By The Star Staff

The Puerto Rico Energy Bureau (PREB) has sharply criticized grid operator LUMA Energy and the Puerto Rico Electric Power Authority (PREPA) for failing to advance renewable energy and storage projects, warning that continued delays threaten grid reliability and the ability to secure federal funding.

The PREB ordered PREPA in a resolution this week to submit a detailed update by Jan. 15, 2026 on all of its efforts to move projects forward. The filing must include the status of pending amendments to power purchase and operating agreements and energy storage service agreements, copies of developers’ requests and draft amendments, updated project information, and comprehensive schedules in Gantt chart or similar format for all projects in Tranches 1, 2, and 4 tenders as well as legacy renewable initiatives. The PREB cautioned that failure to comply will result in fines under Section 6.36 of Act 57-2014.

The directive follows a June 12, 2025 resolution ordering LUMA and PREPA to prioritize shovel-ready renewable and storage projects from Tranches 1, 2, and 4, along with legacy projects that were most advanced in development. Those tranches were part of a tender to obtain more than 1,000 megawatts of renewable energy that was divided into six phases or tranches, of which only three were done.

The PREB stressed the urgency of completing the projects to strengthen Puerto Rico’s electrical system and meet the requirements of Act 82-2010, which mandates energy diversification.

Despite those instructions, progress has been slow. The PREB noted that multiple projects remain stalled at various contractual and development stages, a situation it said is contrary to the public interest and undermines reliable service for PREPA customers. It also warned that delays could jeopardize a narrow window of opportunity to attract federal investment for renewable energy.