Puerto Rico - Renewable Energy Portfolio Standard (Puerto Rico)

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Last modified on February 12, 2015.

Rules Regulations Policies Program

Place Puerto Rico

Name Puerto Rico - Renewable Energy Portfolio Standard
Incentive Type Renewables Portfolio Standard
Applicable Sector Utility
Eligible Technologies Anaerobic Digestion, Biomass, Fuel Cells, Fuel Cells using Renewable Fuels, Geothermal Electric, Hydroelectric, Landfill Gas, Municipal Solid Waste, Ocean Thermal, Photovoltaics, Renewable Fuels, Small Hydroelectric, Small Wind, Tidal Energy, Wave Energy, Wind, Hydrokinetic
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs








Credit Trading Yes





















Standard 20% by 2035














Website http://www.prgef.com/RenewablePlatform.aspx
Date added to DSIRE 2010-07-26
Last DSIRE Review 2012-07-05
Last Substantive Modification
to Summary by DSIRE
2011-07-28


References DSIRE[1]


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 Renewable 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.


Incentive Contact

Contact Name General Info EAA
Department Energy Affairs Administration

Address P.O. Box 41314

Place San Juan, Puerto Rico
Zip/Postal Code 00940
Phone (787) 332 -0914

Fax (787) 721-3089

Website http://www.aaepr.net/
     
     

Authorities (Please contact the if there are any file problems.)

Authority 1: S1519 (2010) Act No. 82
Date Effective 2010-07-19
Date Enacted 2010-07-19


Authority 2: C2610 (2010) Act No. 83
Date Effective 2011-07-01
Date Enacted 2010-07-19

















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"