How Puerto Rico’s Energy Sector Can Revitalize the Island’s Struggling Economy.

by Byron R. Núñez

The Commonwealth of Puerto Rico has more than $70 billion of debt, most of which can be attributed to the United States’ decision to cut corporate tax breaks. The current financial crisis has created a mass exodus by U.S. companies and people from the Island. To ameliorate the situation, President Barack Obama signed the Puerto Rico Oversight Management and Economic Stability Act (PROMESA), which led to the creation of a committee design to manage the island’s finances. This economic instability has forced Puerto Rico’s energy sector to reinvent itself and become more cost-effective and efficient. Currently, Puerto Ricans pay two to three times more for electricity than average Americans. The strongest factor for the island’s high energy costs is that 80% of the energy used on the island comes from imported petroleum as the island itself does not produce nor refine crude oil. Sustainable energy is key to Puerto Rico’s future as the island hopes to comply with a Renewable Energy Portfolio Standard (REPS) that hopes to supply 20% of electricity with green energy by 2035. One company that is hoping to revitalize the island’s struggling economy though the energy sector is Green Kinetic Power (GKP), LLC. Continue reading