Puerto Rico may have to invest up to $42 billion to meet energy demands

The Puerto Rico Electric Power Authority might need to invest from $37 billion to $42.2 billion through 2044 to meet energy needs, according to information contained in the first interim 2025 integrated resource plan (IRP) presented by LUMA Energy to the Puerto Rico Energy Bureau last week.

The document is part of the ongoing process to design the IRP, the blueprint for the island’s energy needs. The information provided, which is essential for modernizing Puerto Rico’s energy infrastructure, covers generation, transmission, distribution, operations and the development of new resources. The draft IRP presents four distinct portfolios, each modeled using the present value of revenue requirements, which represents the total system cost discounted to present value over the planning horizon.

Portfolio A, estimated at $37.0 billion, focuses on liquefied natural gas (LNG) and biodiesel conversions, with no new utility-scale solar projects beyond approved ones as part of the renewable Tranche 1 and Tranche 2 energy tenders. Portfolio B, which according to the document is $42.2 billion, anticipates higher energy demand and reduced distributed energy contributions. In this portfolio, new LNG units are built and then converted to biodiesel along with some of the existing units. It includes a substantial increase in the number of batteries built and does not add more solar photovoltaic resources beyond those approved in Tranche 1 and Tranche 2 tenders.