The U.S. Department of Energy (DOE) has announced a major shift in its strategy to address Puerto Rico’s ongoing energy crisis. According to Solar Power World, $365 million previously allocated for solar and battery storage projects will now be redirected toward alternative technologies aimed at improving the island’s grid resilience.
The funds, originally designated under the Puerto Rico Energy Resilience Fund (PR-ERF), were expected to support the installation of rooftop solar and battery storage systems. These projects were set to begin construction in 2026. However, in light of recent energy emergencies and widespread blackouts across the island, federal officials say the new plan will allow for faster and more effective deployment of resources to stabilize the power system.
DOE officials stated that the redirected funds will support “practical fixes and emergency activities” with the goal of delivering “faster, more impactful” improvements. The priority now is to strengthen critical facilities, including hospitals and community centers, which are essential during grid failures and emergencies.
The announcement comes just weeks after U.S. Secretary of Energy Chris Wright issued two emergency orders for Puerto Rico following one of the island’s most severe recent blackouts. Puerto Rican officials have praised the decision to act swiftly and realign the funding to better match the island’s urgent needs.
PUERTO RICO Energy Emergency
“Puerto Rico is facing an energy emergency that requires we act now and deliver immediate solutions. Our communities, businesses, and healthcare facilities cannot afford to wait years, nor can we rely on piecemeal approaches with limited results. Rather than impacting a few customers, deploying these funds for urgent projects that improve the resiliency and reliability of our grid will have widespread, lasting benefits for all 3.2 million Americans in Puerto Rico,” said Governor Jenniffer González-Colón in a public statement.
The governor credited President Trump and Secretary Wright for prioritizing Puerto Rico’s energy transformation. “Since day one, President Trump and Secretary Wright have made it a priority to ensure we implement comprehensive solutions to address Puerto Rico’s energy challenges. I look forward to continuing working with them on these efforts,” she added.
The DOE emphasized that the funds will now go toward technologies that enhance the grid’s flexibility, response time, power flow and control capabilities, infrastructure strength, energy supply security, and overall safety. While specific technologies were not named in the DOE’s announcement, the agency signaled that the redirected investment would yield broader and more immediate benefits across the island than the previously planned solar and storage installations.
DOE is working closely with Puerto Rican leadership, including Energy Czar Josué A. Colón-Ortiz, local energy providers, and community stakeholders to ensure that the funds are used effectively and efficiently. Officials stressed that any new projects funded through this redirection will be designed to support long-term energy resilience while addressing immediate vulnerabilities in the grid.
The shift in funding has raised questions among clean energy advocates who hoped the original solar and storage projects would help reduce the island’s dependence on fossil fuels. However, the DOE maintains that the current crisis demands a flexible approach and that renewable energy remains a critical part of Puerto Rico’s long-term strategy.
This development marks a significant turning point in Puerto Rico’s recovery from years of devastating storms, unreliable electricity, and infrastructure damage. As DOE and Puerto Rican officials work together to roll out the redirected initiatives, the island’s residents and energy stakeholders await the next steps in what could be a new era of grid modernization.