PUERTO RICO

Incentives/Policies for Renewables & Efficiency

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Puerto Rico - Renewable Energy Portfolio Standard 

Last DSIRE Review: 08/27/2014

Program Overview:

State: Puerto Rico

Incentive Type: Renewables Portfolio Standard

Eligible Renewable/Other

Technologies:

Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectr

Electric, Fuel Cells, Municipal Solid Waste, Hydrokinetic, 

Digestion, Small Hydroelectric, Tidal Energy, Wave Ener

Thermal, Renewable Fuels, Fuel Cells using Renewable 

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

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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 regula

needed to implement this law; this record will be updated periodically as the rules are dev

Eligible Technologies

It requires the Autoridad de Energía Eléctrica de Puerto Rico (Puerto Rico Electric Power Authority 

supply 20% of retail electricity sales from eligible "green energy" resources by 2035. Green energy 

into two categories. The first category is "Sustainable Renewable Energy" which includes solar, wind

renewable biomass, qualified hydroelectric energy, marine and hydrokinetic, ocean thermal, and any 

renewable energy" as defined by the Commonwealth Energy Public Policy Office via future regulatio

category is "Alternative Renewable Energy," which includes energy derived from municipal solid was

gas, anaerobic digestion, fuel cells, and any other "alternative energy" as defined by the Commonwe

Public Policy Office via future regulation. Renewable biomass, qualified hydroelectric, and MSW are 

the law. The different categories were created with the potential federal renewable energy standard i

"sustainable renewable energy resources" would qualify under Puerto Rico's standard and also a po

federal standard; whereas the "alternative renewable energy" resources would only qualify for Puerto 

Requirements

In July 2010, Puerto Rico enacted the island's first Renewable Energy Portfolio Standard in an effort 

renewable energy development as well as reduce Puerto Rico's dependence on imported foreign o

relies heavily on oil to generate electricity. Approximately 70% of its electricity is produced this way).

Targets: 

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% 

of 20% during this time period.

2035: 20.0%

Renewable Energy Credits

PREPA must show compliance with the RPS through procurement of renewable energy credits (RE

is equivalent to one megawatt-hour (MWh) of electricity derived from a green energy source. RECs m

starting in 2013 for the 2015 compliance year. RECs may be banked for two years in addition to vinta

although the REC loses half its value if it is banked for use in year 2. Puerto Rico will be using the

Renewables Registry (TM) for REC tracking.

The newly created Commonwealth Energy Public Policy Office will be responsible for overseeing R

implementation. The Renewable Energy Commission in this office is to be made up of seven memb

authority to promulgate rules, issue orders and clarify policies as needed.

Note: On May 27, 2014 Act 57 was passed and requires PREPA to create a RELIEF plan.

* The law applies to all retail electric providers of 50,000 MWh or more per year. However, PREPA 

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 

agreements to demonstrate partial compliance.

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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/

Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives 

does not constitute professional tax advice or other professional financial guidance, and it should not be used as the 

information when making purchasing decisions, investment decisions or tax decisions, or when executing other bind

refer to the individual contact provided below each summary to verify that a specific financial incentive or other polic

project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. 

Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, conce

completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State Univers

Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information 

on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission grant

or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the una

reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewab

(DSIRE) without prior, written consent.

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