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Governor Jenniffer González Colón is set to introduce new legislation soon aimed at tackling Puerto Rico’s energy challenges, which includes a provision to allow the coal-powered facility in Guayama managed by AES to continue operations under specific criteria.
“Several bills have been prepared, while others are still being formulated. We anticipate that by next week all energy-related measures will be ready for submission,” the governor remarked during a weekend press briefing. “We have been thorough in our consultations with experts, and these initiatives and concepts have received unanimous support from this energy transformation committee, made up of professionals across various sectors and political affiliations. I am very pleased that we have achieved consensus on such an important issue. This process also included the chairs of the committees that will be addressing these energy issues in the House and Senate.”
The initial measures to be presented will concentrate on energy generation. Subsequently, the governor will unveil proposals to resolve challenges related to transmission and distribution, including plans to terminate the contract with LUMA Energy for operating PREPA’s transmission and distribution (T&D) system. A meeting is slated for January 27 or 28.
“We are planning a discussion with LUMA, during which they can address various matters, including their management of federal funding,” González Colón stated. “They will have the chance to engage with the committee and participate in discussions about transmission and distribution. Following that, we will look into options for new operators and commence the search for these operators with the committee. We will then proceed to the legislative stage.”
One recommendation from the committee is to make the departure of AES from the generation sector contingent upon finding a replacement for the 500 megawatts currently produced by the Guayama plant. The governor admitted that no definitive agreements exist about the future of the coal-fired plant, which is anticipated to shut down in 2027.
“When we submit the bill, we can negotiate which aspects could secure the continuation of that generation,” she stated. “Right now, my primary concern is replacing these 500 megawatts, as there aren’t sufficient generators that can be deployed quickly enough. Therefore, we are operating under emergency conditions.”
The governor expressed hope that AES operators will decide to continue their operations while shifting to alternative fuels. However, she emphasized that there is no assurance this will occur.
“We are unsure if this operator will consent to this energy transition,” González Colón remarked. “This transition must come as both an offer and a request from the Puerto Rico government, and until the legislation is revised, those conditions won’t be established.”
The governor is optimistic that utilizing AES’s existing operating permit could streamline the construction of a facility utilizing alternative fuel sources.
“Clearly, I first need to amend the law to extend an offer in this direction to the operator, as this is a private entity with a legal obligation to cease operations,” she pointed out.
Meanwhile, in July, Clean Flexible Energy, a subsidiary of AES Corp. and Total Energies, declared that it had received an $861 million loan guarantee from the U.S. Department of Energy Loan Programs Office to finance the construction of two solar photovoltaic (PV) plants with battery storage and two standalone battery energy storage systems in Puerto Rico. The PV installations will be situated in the Guayama (Jobos) and Salinas municipalities and are expected to provide clean, reliable, and cost-effective energy throughout Puerto Rico, according to the company.
