Why Can’t Puerto Rico Keep the Lights On?TL;DR:Puerto Rico’s Energy Crisis: Puerto Rico’s ongoing struggle to maintain a stable power supply stems from historical neglect, financial mismanagement, and its vulnerability to natural disasters. Hurricanes Maria (2017) and Fiona (2022) exposed the fragile and outdated grid infrastructure, which has not been fully rebuilt or modernized. Systemic issues like underinvestment, corruption, and bureaucratic inefficiencies exacerbate the challenges, leaving residents and businesses grappling with frequent blackouts and economic disruptions.Historical and Structural Challenges: PREPA’s shift from hydroelectric to fossil fuels in the mid-20th century, coupled with deferred maintenance during economic downturns, laid the groundwork for today’s unreliable grid. Centralized energy generation has left the system vulnerable to widespread outages during natural disasters. Privatization efforts with LUMA Energy (2021) and Genera PR (2023) have yet to deliver on promises of modernization and improved reliability, further fueling public frustration.Natural Disasters and Recovery: Hurricanes Maria and Fiona devastated the power grid, highlighting its lack of resilience. Federal funds for recovery have been delayed by bureaucratic red tape and controversies, such as mismanagement and corruption in contracting. Recovery has been slow, with critical projects incomplete, leaving the grid susceptible to future storms.Energy Policy and Privatization: The 2019 Energy Public Policy Act set ambitious renewable energy targets, but implementation has been hindered by economic and political challenges. The transition to natural gas, championed by recent administrations, aims to stabilize the grid but raises environmental and dependency concerns. Privatization has sparked mixed reactions, with criticism over increased costs and continued outages.Social and Economic Impact: Persistent power outages disrupt daily life, healthcare, and business operations, stifling economic growth and deterring investment. Tourism, a key economic sector, suffers from the island’s unreliable energy infrastructure. The Jones Act further inflates energy costs, limiting Puerto Rico’s ability to source affordable fuel and materials.Future Outlook: Puerto Rico faces significant hurdles in achieving energy reliability and resilience. A long-term strategy integrating renewable energy, modernizing the grid, and addressing governance inefficiencies is critical. Without comprehensive reforms and investment, the island’s energy crisis will continue to undermine economic stability and quality of life. However, leveraging solar energy and community-driven solutions offers hope for sustainable progress.GeopoliticsUnplugged Substack is a reader-supported publication. To receive new posts and support my work, consider becoming a free or paid subscriber.And now for the Deep Dive…IntroductionPuerto Rico’s struggle with maintaining a reliable power supply
Gio. Gen 9th, 2025
