Puerto Rico has been stuck in a tough spot for years, grappling with an overwhelming dependence on imported fossil fuels that account for a staggering 94% of its electricity. The island’s energy landscape is dominated by petroleum-fired power plants, which produced 63% of its power in 2022, followed by natural gas at 23%, and a meager 6% from renewable sources. This reliance results in electricity rates that are among the highest in the United States, second only to Hawaii. The situation is exacerbated by an aging infrastructure and the reality that Puerto Rico consumes nearly 70 times more energy than it generates.
The catastrophic hurricanes of 2017 brought this energy crisis into sharp focus, as they laid waste to the island’s transmission and distribution networks, underscoring the urgent need for a more resilient energy system. The devastation served as a wake-up call, revealing the critical importance of transitioning to renewable energy sources.
In response to these challenges, Puerto Rico has taken significant steps toward a greener future. The Puerto Rico Energy Public Policy Act (Act 17), passed in 2019, sets the ambitious goal of achieving 100% renewable energy by 2050 and mandates the phase-out of coal-fired power generation by 2028. However, these targets won’t be met without substantial investments to modernize the island’s grid and ramp up renewable energy capacity.
Enter the U.S. Department of Energy (DOE), which recently announced a game-changing loan guarantee of $861.3 million aimed at bolstering Puerto Rico’s renewable energy transition. This funding will support the Marahu Project, which includes two solar photovoltaic installations and two independent battery energy storage systems in Guayama and Salinas. Together, these facilities will contribute an impressive 200 megawatts of solar generation and up to 285 megawatts of energy storage to the grid. Managed by Clean Flexible Energy, LLC—a subsidiary of AES Corporation and TotalEnergies Holdings USA—this project is set to generate 460,000 megawatt-hours of electricity annually, enough to power around 43,000 homes while slashing carbon emissions by 2.7 million tons of CO2e each year. That’s like taking 533,000 gasoline-powered cars off the road.
But the Marahu Project isn’t just about environmental benefits; it’s also a boon for the local economy. During construction, the project is expected to create 750 jobs, with 50 full-time positions once it’s operational. This aligns with the Biden administration’s Justice40 Initiative, which aims to ensure that 40% of the benefits from federal investments reach disadvantaged communities, many of which are located in Puerto Rico. Residents of Salinas and Guayama, where energy costs are particularly high, stand to gain significantly from this investment.
Local community engagement is a cornerstone of the project. AES is partnering with community development nonprofits and educational institutions to provide training and professional development, particularly for women and underserved populations. The project’s Community Benefits Plan, currently in the works, will further outline efforts to engage and support the local workforce.
The Marahu Project represents a vital step toward energy resilience for Puerto Rico. Funded under the Energy Infrastructure Reinvestment program created through President Biden’s Inflation Reduction Act, this initiative aims to replace outdated energy infrastructure with modern, clean solutions. In 2022, the President also authorized an additional $1 billion for the Puerto Rico Energy Resilience Fund to bolster the island’s renewable energy efforts.
Through projects like Marahu, Puerto Rico is not just aiming for a 100% renewable energy grid by 2050; it’s actively addressing the climate-related challenges that have long plagued the island. As these initiatives unfold, they could serve as a blueprint for other regions facing similar energy crises, proving that a transition to renewable energy is not only possible but essential for a sustainable future.
