Long before Hurricane Maria collided with Puerto Rico, residents knew the island’s electric grid was a problem. Decades of opportunities to modernize the electric system were lost to financial instability and poor management. So, when the powerful Category 4 hurricane made landfall in September of 2017, the world got to see the extent of the problem.
Puerto Rico’s electric grid was decimated. Parts of the island went without electricity for nearly a year, and thousands lost their lives. Rural communities were the hardest hit. Beyond massive power outages, these American citizens went months with limited access to clean water, food and health services.
Puerto Rico and its residents became the latest casualty of a changing climate. Entire communities are still struggling to rebuild.
The response of the federal government was slow and ineffectual. Now, 18 months later, more work is needed. Many local officials and communities are making remarkable progress recovering and rebuilding. Following their lead is essential to making any solution to Puerto Rico’s energy crisis successful in the long run. Together, the business, investor and nonprofit sectors can support these communities’ resolve by sharing their experience in other parts of the world to reimagine Puerto Rico’s energy future.
Rebuilding Puerto Rico’s electricity system should not merely be an attempt to restore it to pre-Maria condition. Rather, it can be — and should be — an opportunity to protect the island from the next super storm, improve the quality of life for all its residents and strengthen its economy for decades to come. This requires new thinking about how the system is designed, financed and managed.
Last century’s grid simply won’t serve Puerto Rico’s communities well. In many parts of the United States, electricity has become cleaner, more resilient and more distributed. Customers are becoming both users and generators of electricity. New technologies are being used to manage supply and demand.
For example, the Environmental Defense Fund is developing an innovative project to demonstrate the feasibility of low-carbon microgrids. Think of them as mini-energy service stations that fuel up on solar power and are supported by battery storage and intelligent software. They link to the larger grid — ensuring the delivery of affordable, clean and reliable energy every day — and can also separate from the grid during emergencies, like Maria, to keep the lights on in remote parts of the island. Keeping the lights on will be a big advantage when storms strike again.
Of course, there are physical challenges to modernizing Puerto Rico’s electric system. Financing is a big one. Budget estimates for rebuilding the grid stand at $26 billion — how and where those dollars are spent to fortify the energy infrastructure is vital for Puerto Rico’s future. To attract the kind of sound financing this effort requires, Puerto Rico will need new partners — both public and private — that have experience in this world of clean energy investment.
Perhaps the greatest challenge will be redefining the role the electric utility plays in the economy. Historically, utilities were seen as “power providers.” They sent electricity to homes and businesses and customers paid their bills. Today’s innovative utilities are evolving into “power managers.” They are partnering with customers to enhance resiliency and reliability and create a stronger and more sustainable energy system.
For Puerto Rico to reap the benefits of a smarter, cleaner and more resilient grid, the utility itself needs to modernize. This will be the foundation for the energy transformation that needs to happen in the island. It may be the most difficult change, but it will be the most important and impactful one.
Hurricane Maria laid bare the flaws of Puerto Rico’s grid. But as tragedies often do, it also exposed an opportunity. The people of Puerto Rico deserve all of the benefits a modern energy system can bring. Cleaner energy. Reliable and resilient energy. Energy that’s available in every community on the island. And a utility that’s able to deliver it. We stand ready to help Puerto Rico restore and reboot its electricity system to build a future that is economically and environmentally sustainable for all.
The author is president of the Environmental Defense Fund.
