Skip Navigation

The U.S. Department of Energy and the North Carolina Solar Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in the summer of 2014. Staff are currently working hard on the new DSIRE and are unfortunately only able to make minimal updates to the DSIRE website at this time. We apologize for any inconvenience and thank you for using DSIRE.

US Department Energy Efficiency and Renewable Energy
IREC North Carolina Solar Center
Home Glossary Links FAQs Contact About Twitter    Facebook
Puerto Rico

Puerto Rico

Incentives/Policies for Renewables & Efficiency

Printable Version
Puerto Rico - Renewable Energy Portfolio Standard   

Last DSIRE Review: 07/05/2012
Program Overview:
State: Puerto Rico
Incentive Type: Renewables Portfolio Standard
Eligible Renewable/Other Technologies: Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Fuel Cells, Municipal Solid Waste, Hydrokinetic, Anaerobic Digestion, Small Hydroelectric, Tidal Energy, Wave Energy, Ocean Thermal, Renewable Fuels, Fuel Cells using Renewable Fuels
Applicable Sectors: Utility
Standard:20% by 2035
Credit Trading:Yes
Web Site: http://www.prgef.com/RenewablePlatform.aspx
Authority 1:
Date Enacted:
Date Effective:
S1519 (2010) Act No. 82
07/19/2010
07/19/2010
Authority 2:
Date Enacted:
Date Effective:
C2610 (2010) Act No. 83
07/19/2010
07/01/2011
Summary:

Note: Compliance for this standard does not begin until 2015. Additional rules and regulations are needed to implement this law; this record will be updated periodically as the rules are developed.

In July 2010, Puerto Rico enacted the island's first Renewable Energy Portfolio Standard in an effort to spur renewable energy development as well as reduce Puerto Rico's dependence on imported foreign oil (Puerto Rico relies heavily on oil to generate electricity. Approximately 70% of its electricity is produced this way).

It requires the Autoridad de Energía Eléctrica de Puerto Rico (Puerto Rico Electric Power Authority or PREPA)* to supply 20% of retail electricity sales from eligible "green energy" resources by 2035. Green energy resources fall into two categories. The first category is "Sustainable Renewable Energy" which includes solar, wind, geothermal, renewable biomass, qualified hydroelectric energy, marine and hydrokinetic, ocean thermal, and any other "clean or renewable energy" as defined by the Energy Affairs Administration via future regulation. The second category is "Alternative Renewable Energy," which includes energy derived from municipal solid waste (MSW), landfill gas, anaerobic digestion, fuel cells, and any other "alternative energy" as defined by the Energy Affairs Administration via future regulation. Renewable biomass, qualified hydroelectric, and MSW are further defined in the law. The different categories were created with the potential federal renewable energy standard in mind; the "sustainable renewable energy resources" would qualify under Puerto Rico's standard and also a potential, future federal standard; whereas the "alternative renewable energy" resources would only qualify for Puerto Rico's standard.

The compliance schedule is as follows:

  • 2015 - 2019: 12.0%
  • 2020 - 2027: 15.0%
  • 2028 - 2034: Interim targets to be determined; PREPA is to develop a plan to ramp up from 15% to the ultimate goal of 20% during this time period.
  • 2035: 20.0%


PREPA must show compliance with the RPS through procurement of renewable energy credits (RECs).** One REC is equivalent to one megawatt-hour (MWh) of electricity derived from a green energy source. RECs may be banked starting in 2013 for the 2015 compliance year. RECs may be banked for two years in addition to vintage year, although the REC loses half its value if it is banked for use in year 2. Puerto Rico will be using the North American Renewables Registry (TM) for REC tracking.

The newly created Comisión de Energía Renovable (Renewable Energy Commission) within the Administración de Asuntos Energéticos (Energy Affairs Administration) will be responsible for overseeing RPS implementation. The Renewable Energy Commission is to be made up of seven members and will have authority to promulgate rules, issue orders and clarify policies as needed.

 

* The law applies to all retail electric providers of 50,000 MWh or more per year. However, PREPA is the only retail electric provider in Puerto Rico that currently meets that definition.

**PREPA may also report on the amount of renewable energy purchased through net metering or power purchase agreements to demonstrate partial compliance.


 
Contact:
  General Info EAA
Energy Affairs Administration
P.O. Box 41314
San Juan, PR 00940
Phone: (787) 332-0914
Fax: (787) 721-3089
Web Site: http://www.aaepr.net/
NCSU - home
Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.