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LUMA predicts 154 hrs. of power outages from June 2024 to June 2025

A utility report warns of grid reliability issues due to generation shortfalls and the need for investment in Puerto Rico’s aging power plants.

In its annual “Resource Adequacy Report” submitted to the Puerto Rico Energy Bureau (PREB), Puerto Rico’s power distribution and transmission utility, LUMA Energy, highlighted ongoing challenges affecting the reliability of the island’s electric grid, attributing much of the instability to insufficient and unreliable generation capacity.

According to the 2024 report, LUMA experts estimate that between July 2024 and June 2025, customers may experience an average of 154 hours of service interruptions due to generation shortfalls, distributed over approximately 36 days.

This marks an increase from July 2023 to June 2024, when generation shortfalls caused 78 hours of service interruptions spread over 33 days, reflecting a concerning trend of deteriorating generation capacity impacting residents and businesses alike.

While LUMA operates the island’s transmission and distribution system, it does not own or manage the generation facilities. However, LUMA’s annual report assesses the stability, reliability and resilience of Puerto Rico’s power generation resources to help meet energy demand.

“Without reliable generation, there is no reliable energy in Puerto Rico,” said Juan Saca, CEO of LUMA Energy. Saca emphasized that both the transmission and generation systems suffer from years of neglect, leaving the island with insufficient capacity and frequent outages.

“Our ‘Resource Adequacy Report’ is a critical tool for analyzing the current state of the generation system, evaluating impacts on reliability, and identifying necessary actions to ensure that Puerto Ricans have access to reliable energy every day,” he added.

Puerto Rico’s electric generation facilities are managed by multiple entities, including GeneraPR, independent power producers (IPPs), and the Puerto Rico Electric Power Authority (PREPA).

While IPP-operated facilities generally maintain higher availability rates, PREPA-operated plants, which account for 76.5% of dependable capacity from thermal power sources, continue to face reliability challenges due to historical neglect and aging infrastructure, LUMA said.

LUMA’s report indicates that on average, only 53% of Puerto Rico’s total generation supply is expected to be available at any given time, with factors such as regular maintenance outages and unplanned forced outages contributing to this limited availability. This insufficiency often results in frequent load sheds and blackouts across the island.

The “Resource Adequacy Report” calls for urgent investment and strategic improvements in Puerto Rico’s generation infrastructure. According to LUMA, enhancing energy reliability will require addressing the aging fleet of power plants, many of which are overdue for upgrades or replacements.

Saca underscored that while LUMA can manage the grid’s transmission and distribution, the system’s reliability remains compromised without consistent power generation.

The report’s findings support calls from industry experts and stakeholders advocating for a comprehensive overhaul of Puerto Rico’s energy system. As the island increasingly looks toward renewable energy sources, diversifying generation is seen by some as a way to reduce reliance on aging, unreliable thermal plants. 

In addition, there are calls for policy reforms to encourage private investment in energy infrastructure.

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