New York – During her visit to Puerto Rico this week, U.S. Department of Energy (DOE) Secretary Jennifer Granholm described as “unacceptable” LUMA Energy’s efforts to replace an electrical transformer at a substation in the south of the island, which has affected service in the town of Santa Isabel and surrounding areas.
Speaking to the media during a stop in the municipality of Loíza to highlight the progress of the federal program “Solar Access” for solar panels on roofs and battery storage, Granholm urged both the private consortium in charge of energy transmission and distribution, as well as Genera PR, in charge of generation, to speed up their work to stabilize and modernize the system.
“I must say that what has happened is unacceptable. I know that the governor has started an investigation, so it is important to see what is happening there. We have been frustrated with the slow pace of rebuilding the network. We have made money available, we have improved the processes with FEMA (Federal Emergency Management Agency), but we want to see LUMA and Genera (PR) move faster, because the situation is urgent and requires greater agility. We are not satisfied and we will have new meetings these weeks (with representatives of LUMA and Genera). We are trying, but we have to be more agile,” said the official.
On June 2, the transformer at the Useras substation in Santa Isabel experienced a failure, resulting in a massive blackout in the area.
Some 350,000 people experienced power outages.
At a cost of $4 million, LUMA moved a transformer from another substation in Caguas. However, the equipment was also unsuitable and could not be installed. Although LUMA plans to transport one of these machines from Maunabo, this step has not been carried out, partly due to resistance from the mayor who fears that the electricity supply to his municipality will be affected.
In response to Granholm’s question, LUMA said in a statement that it is working to streamline processes and improve infrastructure on the island.
“At LUMA, we have great respect for elected representatives and leaders dedicated to public service and improving the lives of the people of Puerto Rico. We work diligently to comply with all regulatory and federal requirements, and we are in constant communication with the relevant agencies to expedite processes and ensure the availability of the necessary resources to improve the island’s electrical infrastructure,” they said.
The company also stated that it is open to supervision of its management, even if it is by federal authorities.
“We recognize the importance of oversight in our operations and strive to maintain transparency and accountability at all times, including the prudent spending of state and federal funds. Our commitment remains steadfast in providing reliable and resilient electric service, while responsibly managing financial resources to meet the needs of our 1.5 million customers throughout Puerto Rico,” they stated.
As part of her ninth visit to the island since serving as DOE secretary, Granholm, who is also in charge of the “Puerto Rico Grid Modernization and Recovery Team” at the request of President Joe Biden, announced the installation of the first clean energy system under Acceso Solar. Puerto Rican Democratic representatives Nydia Velázquez and Alexandria Ocasio Cortez also traveled to the island to participate in that and other events of the federal delegation.
The Solar Access program was made possible by the Consolidated Appropriations Act for Fiscal Year 2023, which Biden signed into law in December 2022.
The statute approved by Congress included $1 billion for the establishment of the Puerto Rico Energy Resilience Fund (PR-ERF), an initiative that seeks to encourage low-income Puerto Ricans to obtain these renewable energy systems.
What is the DOE Solar Access Program?
For the Solar Access program, the DOE allocated $440 million, money that will be used to benefit between 30,000 and 40,000 homes in Puerto Rico. People in vulnerable areas that experience frequent power outages, and homes that house patients who require care with medical equipment that depends on electricity, are supposed to have priority when evaluating to approve one of these systems.
In July of last year, the DOE announced the multimillion-dollar allocation, while the application period was announced in February of this year.
Granholm said the agency he represents, through the three solar companies, Generac Power Systems, Sunnova and Sunrun, will install 3,000 solar panel and battery systems before the end of the year.
Part of the intention behind the program is to advance renewable energy goals in accordance with the Puerto Rico Energy Public Policy Act (Act 17-2019), which establishes that the island must reach 100% renewable energy by 2050.
The initiative also goes hand in hand with the results of the PR 100 Report, led by the DOE to six laboratories in the United States to identify ways to achieve the aforementioned goal.
The “Puerto Rico Electric Grid Resilience Study and Transitions to 100% Renewable Energy” (PR100), whose final version was released last April, found that the renewable energy potential in Puerto Rico exceeds current and projected total annual loads by more than 10 times through 2050.
However, to move forward with the processes, a considerable investment of resources is necessary to repair the electrical network impacted by Hurricane Maria in 2017 and which has lacked maintenance for decades.
DOE’s Partnership with USDA’s Rural Development
Iris Lorenzo Manzo was the resident who benefited from the solar panel system announced by the DOE.
Manzo, a retired woman with limited income, lives in the Villa Carmen sector of the Medianía Baja neighborhood. Her house was damaged by Hurricane Fiona, but was repaired last March with funds from the Rural Development office of the federal Department of Agriculture (Rural Development / USDA).
Fiona.
USDA Rural Development, an agency that provides loans and grants for home repair, reconstruction and construction, among other initiatives in rural areas, provided the financing to reinforce the roof that will house the new renewable energy system, among other structural changes. Before the repairs, the concrete, wood and zinc roof had leaks and several deficiencies, so it did not comply with building codes and regulations, Rural Development specified, according to a statement sent to El Diario.
“The maximum amount of assistance under the Presidential Disaster Home Repair Grant has increased to $42,920. I urge Puerto Ricans to apply for the program, as there are still funds available for people who suffered damage from Hurricane Fiona. So far, $2.5 million has been allocated to repair the homes of nearly 100 families,” said Maximiliano J. Trujillo Ortega, state director of USDA Rural Development for Puerto Rico, who was also present at the event in Loíza.
Generac Receives $200 Million from Puerto Rico Energy Resilience Fund
In written statements also sent to this newspaper, Generac Power Systems said it will receive a subsidy of up to $200 million over 5 years under the agreement with the DOE.
According to the company, installations will begin next month.
Generac will be working with several companies that will support the program, including PathStone and Interstate Renewable Energy Council (IREC), who will coordinate community efforts and serve as liaisons between Solar Ambassadors, installers and eligible beneficiaries.
FR-BLDM will be responsible for the installations in partnership with small local businesses.
“Supporting local businesses is an important part of our goal to provide reliable and sustainable energy solutions to the most vulnerable communities in Puerto Rico,” said Norm Taffe, president of Energy Technology at Generac. “By working with local installers and businesses, we not only receive valuable support on the ground, we also foster job creation and community development. This collaboration helps ensure that we can offer high-quality, resilient energy solutions while boosting the local workforce and economy,” they said.
Grijalva celebrates the installation of the first solar panels under Acceso Solar
For his part, Raúl Grijalva, ranking member of the U.S. House of Representatives Committee on Natural Resources, celebrated the installation of the first solar and battery systems with PR-ERF money.
“Today marks the beginning of a more reliable and resilient energy future for tens of thousands of families in Puerto Rico,” said Grijalva, who led congressional efforts to allocate the $1 billion.
“It will not only help provide energy security to low-income families and people with disabilities who receive them, but it will also relieve pressure on the power grid, which will help everyone, especially now that hurricane season is approaching,” he added, according to the Efe agency.
Before her stop in Loíza, Granholm met at La Fortaleza with the island’s governor, Pedro Pierluisi, who highlighted the push for large-scale renewable projects as part of plans to achieve clean energy goals.
“The focus continues to be on expanding access to solar, battery and efficiency systems in homes and businesses, while we promote the development of large-scale renewable projects to ensure we can meet the capacity required by our electrical system,” the governor shared on social media about his meeting with the secretary.
Keep reading:
U.S. Department of Energy assures El Diario that it is monitoring recent blackouts in Puerto Rico under LUMA Energy
DOE’s “Solar Access Program” for photovoltaic panels in Puerto Rico: 10 key points
USDA Rural Development in Puerto Rico promotes several programs for the construction and repair of homes with federal funds
Puerto Rico: Jennifer Granholm examines possible increase of up to 80% in electricity rates as a result of transition to renewable energy