Puerto Rico heads into 2027 with more renewable projects, federal reconstruction funds and support for distributed solar, but also with a politically uncertain direction, as new solar and battery projects, a rewrite of interconnection rules, a changed Washington after Democratic victories in Congress and the bankruptcy of the Puerto Rico Electric Power Authority (PREPA (AEE); PREPA) shape the island’s energy policy between San Juan and the federal capital. Average rates now hover around 34 cents per kilowatt-hour, nearly double the mainland average, and interruptions in natural gas supply have forced the use of costlier diesel while billions of dollars for reconstruction remain undisbursed.
Among the key projects is AES Puerto Rico’s Marahú Solar and Storage in Salinas and Guayama, combining about 200 megawatts of solar generation with 285 megawatts of battery storage. In Naguabo, Polaris Renewable Energy is expanding storage at the Punta Lima wind farm with a 35.7-megawatt battery system, with commercial operation expected in 2027. Other solar and storage projects approved by PREPA will advance in Coamo, Ponce, Peñuelas, Caguas and Juana Díaz, and Genera PR is working on batteries and flexible generation.
The Energy Bureau proposes a new Distributed Energy Resources Interconnection Regulation, expected at the start of January 2027, requiring proactive planning, hosting-capacity analyses per feeder, joint interconnection studies, compensation for curtailed solar injections and automatic approvals. Former senator Ramón Luis Nieves said Democrats could try to restore renewable incentives eliminated under the "Big Beautiful Bill" and negotiate with Trump, though he warned of uncertainty and the presidential veto.