Thomas King, cofounder of the Puerto Rico Energy Forum, joined George Laws Garcia and Martin Rivera on the podcast, Mano a Mano, for a discussion of Puerto Rico’s energy crisis. He pointed out that the current energy crisis is not just a problem — it’s also an opportunity. “You’ve wiped out an old system, it doesn’t work, it’s never going to work,” he said, “so it actually created a huge opportunity for Puerto Rico.”
The problem is well known; in spite of having one of the most expensive electrical systems in the nation, Puerto Rico cannot supply reliable energy. Blackouts are common. Healthcare facilities cannot rely on steady power for lights, elevators, machinery, or refrigeration for medications. Home oxygen, refrigeration for medications requiring it, safe food storage, and other basic daily home energy needs are not always available, and people died after Hurricane Maria because of that. Manufacturing and service businesses must have their own generators to be able to conduct business, making the Island less attractive to investors. So how can this be an opportunity?
How did we get here?
“40 years of poor management and underinvestment and raising debt not to raise infrastructure but to subsidize energy bills,” said King. “That’s a gross simplification but it’s not too far from the truth, and it’s still going on.” He lamented the way one group tends to blame another, when problems are widespread and systemic. Weather, the bankruptcy and outstanding debt, the Financial Oversight and Management Board, economic details of the bonds, legal issues, and more all play into the problem.
“It’s arcane and technical,” said Laws Garcia, “but the practical impact of this is that we have not yet been able to commence the full reconstruction of Puerto Rico’s energy system.”
What’s next?
“Puerto Rico’s energy infrastructure was built at a time when it relied mostly on petroleum and fossil fuels and coal,” he continued. “There’s been a huge push to modernize the caseload of Puerto Rico’s energy system with natural gas as a cleaner alternative…Renewables need to be part of that mix, but sometimes there’s this weird debate: it either needs to be all renewables or all natural gas.”
King described the amazing rise of solar energy in Puerto Rico. “It’s more than a gigawatt of capacity,” he said, “which is huge.” But he says that this not the complete solution. “You can make the perfect the energy of the good.”
Puerto Rico used to rely 100% on petroleum — bunker fuel, Laws Garcia pointed out, referring to the dirtiest and least efficient form — and now is aiming for 100% renewable energy. “If you want to rush right to renewables, ” King pointed out, “you need a huge balance sheet…Natural gas is the transition.”
Rep. Bruce Westerman, who is the Chair of the House Natural Resources Committee, which oversees legislation on Puerto Rico, is an outspoken supporter of natural gas and has urged Puerto Rico to rely more heavily on this form of energy. But a large contract with New Fortress for liquified natural gas broke down after the FOMB expressed concerns about potential monopolies and other stakeholders worried that the investment in natural gas would delay progress with renewable energy.
King also spoke highly of the solar battery systems currently being installed, but warned that they wouldn’t make a difference until next year.
Good news?
King celebrated several success stories, including the fact that the number of blackouts — at least up through the end of July — have been smaller this year than expected.
But Laws Garcia noted that territory status actually gets in the way of chances to improve the energy system. Lack of opportunity causes people to leave the territory, Laws Garcia said, and the dwindling population reduces the market for energy and therefore the revenue.
“Where Puerto Rico is now is a limbo, and my personal view is that it’s infantilizing,” mused King. “You don’t have the full rights or responsibilities of either a state or an independent country…I would be very happy to see Puerto Rico join us as the 51st state.” He emphasized that states wouldn’t face the kinds of problems the Island has faced. “It would be much easier as a state to get regular financing.”
And indeed, no state faces the kind of energy problems Puerto Rico now has. Reach out to your legislators now and let them know that they have the chance to help Puerto Rico establish a permanent status — statehood.
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