Puerto Rico - Energy Transformation Plan

August 21, 2014

Summary

On May 27, 2014, Governor Alejandro García-Padilla signed into law Act 57 (“the Act”), known as the “Act for the Transformation and Energy Relief of Puerto Rico.” The mission of the Puerto Rico Energy Transformation and RELIEF Act is to transform the sole utility - the Puerto Rico Electric Power Authority (PREPA) to decrease the island's dependence on fossil fuels, and increase reliance on local renewable resources such as the sun, wind, energy conservation and efficiency. The Act requires PREPA to adopt Puerto Rico’s Energy RELIEF Plan.

PREPA is required to present to the Energy Commission the Energy RELIEF Plan within sixty days from the Commission’s approval of its regulations. If PREPA does not comply with said requirement, the Energy Commission will instead prepare said RELIEF Plan within a period of ninety (90) days.

PREPA is also required, within one (1) year from July 1, 2014 (to be revised every three years thereafter), to submit to the Energy Commission for its approval an Integrated Resources Plan setting a long-term strategy (20 years) for meeting energy demands based on current and attainable infrastructure and technologies, combined with conservation and diversification efforts

Net Metering: The Energy Reform directs the Puerto Rico Electric Power Authority (PREPA) to adopt expedited procedures for the interconnection of renewable energy generation systems with nameplate capacity of one (1) MW or less. Furthermore, it directs PREPA to adopt regulations for generation systems with nameplate capacity between one (1) and five (5) MW, using as a model the technical, procedural, and legal parameters contained in the Small Generator Interconnection Procedures (SGIP) as well as in the Small Generators Interconnection Agreement (SGIA), established by Order No. 2006 of the Federal Energy Regulatory Commission (FERC). Click here to go to the DSIRE Puerto Rico Net Metering Page.

Energy Efficiency: the Energy Commission within a period of three years after July 1, 2014, ensure that at least sixty percent (60%) of the electric power generated in Puerto Rico based on fossil fuels (gas, coal, oil, and others) is “high efficiency" as defined by the Energy Commission, an independent regulatory body created by the Act. This includes the thermal efficiency of the power plant or facility per type of fuel used, fuel cost, technology, and potential of proposed technology to reduce production costs per kilowatt-hour.

Renewable Energy: PREPA shall oversee that the integration of renewable energy meets the requirements set forth in Act No. 82-2010. PREPA shall also promote the direct use of renewable energy by its customers, particularly by expediting and simplifying any transaction, process, or requirement in connection with residential and commercial small rooftop solar projects of less than twenty-five kilowatts (25 kW). If practicable, it shall establish a financing mechanism to contribute to its development.

Distributed Generation: PREPA shall plan, build, and update distribution systems to ensure the integration to the maximum extent possible of renewable distributed generation.

Renewable Portfolio Standard (RPS): The Act seeks to perpetuate Puerto Rico's RPS enabling statute: S1519 (2010) Act No. 82, enacted 7/10/2010.

Program Overview

Implementing Sector:	State
Category:	Regulatory Policy
State:	Puerto Rico
Incentive Type:	Other Policy
Web Site:	http://www.prepa.com/
Administrator:
Start Date:
Eligible Renewable/Other Technologies:	Solar Photovoltaics Wind (All) Biomass Ceiling Fan Lighting Heat pumps Energy Mgmt. Systems/Building Controls Doors Roofs Comprehensive Measures/Whole Building Wind (Small) Other Distributed Generation Technologies

Authorities

Name:	Act No. 57-2014
Date Enacted:	05/27/14
Effective Date:	05/27/14

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.