Executive order strips PREB of control over generation tenders

The executive order that Gov. Jenniffer González Colón recently enacted will give the newly established Office of the Energy Czar the authority to lead efforts to incorporate new sources of base generation through public-private partnerships, effectively removing significant power from the Puerto Rico Energy Bureau (PREB) regarding those initiatives.

In light of several laws mandating that the island obtain all its energy from renewable sources by 2050, and following PREB’s approval of an Integrated Resource Plan, the energy regulator has begun procuring some 3,750 megawatts (MW) of renewable energy and 1,500 MW of energy storage resources, dividing the process into six tranches. However, those efforts have encountered issues: PREB canceled the Tranche 3 tender in October 2024 and subsequently launched Tranche 4, which resulted in only one project -- a 50 MW battery storage project -- being selected. To manage the tenders, PREB hired an outside manager.

Upon taking office, González Colón appointed Josué Colón Ortiz, the former director of the Puerto Rico Electric Power Authority (PREPA), as the energy czar. He also was named the head of the Public-Private Partnerships Authority. The executive order issued on Friday formalized the creation of the Office of the Energy Czar. Colón is tasked with overseeing LUMA Energy, the private operator of PREPA’s transmission and distribution system, with plans underway to cancel the contract with the embattled consortium.