In a recent government meeting, discussions centered on energy cost reduction and the operational status of Puerto Rico's electric utility, PREPA, which remains in bankruptcy. A representative from Genera emphasized the need to transition away from oil, advocating for a shift towards gas and potentially hydrogen as controllable energy resources. The focus was particularly on green hydrogen, contingent on the availability of renewable energy sources.
A significant point of contention arose regarding the effectiveness of solar panels in severe weather. A committee member challenged claims that solar technology is ineffective during storms, citing a Washington Post report that indicates solar panels perform better than Puerto Rico's existing fossil fuel grid during such events.
The meeting also addressed the contract between LUMA Energy and PREPA, which began operations in June 2021 following negotiations that started in 2020. However, the contract's full implementation is contingent upon PREPA exiting bankruptcy, a process that is expected to take at least another year. This delay is impacting the utility's ability to secure necessary investments, which could lead to increased costs for consumers.
The discussions highlighted the urgent need for infrastructure improvements and financial strategies to support Puerto Rico's energy transition, while also clarifying the current limitations imposed by PREPA's bankruptcy status.