Puerto Rico's economy is on the path to recovery after officially exiting bankruptcy in 2022. However, one major obstacle that still needs to be addressed is the restructuring of the Puerto Rico Electric Power Authority (PREPA), the island's deeply indebted electricity company. PREPA has been plagued by mismanagement and underinvestment, resulting in frequent blackouts and voltage fluctuations that have frustrated residents and businesses.
Tom Sanzillo, the Director of Financial Analysis at the Institute for Energy Economics and Financial Analysis, sheds light on the biggest problems PREPA currently faces. One of the critical issues is the need to rebuild the electrical grid, which has suffered from over a decade of neglect. In this regard, PREPA has come up with a plan that emphasizes the use of renewable energy sources to improve service quality, cut emissions, and save money. However, the implementation of renewable energy has been hindered by PREPA's history of mismanagement, and the goal of reaching 40 percent renewable energy by 2025 is far from being met. Currently, renewable energy accounts for less than 10 percent of the energy mix.
