The U.S. Department of Energy (DOE) announced that up to $365 million will be reallocated to address Puerto Rico’s ongoing power grid challenges. The funding aims to support essential repairs and emergency actions to improve grid stability and strengthen critical infrastructure on the island.
The DOE’s Grid Deployment Office will manage the funding through the Puerto Rico Electric Power Authority (PREPA), focusing on upgrades that target longstanding issues with deferred maintenance, mismanagement, and storm-related damage. These problems have left residents and businesses in Puerto Rico facing frequent outages and increased energy costs.
The decision follows President Trump’s Executive Order 14156, which directs resources toward reinforcing key infrastructure and ensuring reliable, affordable electricity for Puerto Rican communities.
“For too long Puerto Ricans have endured instability in their power system with outages and inflated costs,” said U.S. Secretary of Energy Chris Wright. “The Department of Energy is putting the needs of Puerto Rico’s residents first and taking decisive action to restore reliability, protect essential services, and build an energy future they can depend on.”
Puerto Rico Governor Jenniffer González-Colón also commented on the federal support: “A reliable, secure electric system is essential to meet citizens’ basic needs and promote economic development, including our initiatives to bring manufacturing back to Puerto Rico and revitalize the American industrial base. Since day one, President Trump and Secretary Wright have recognized this, making it a priority to support our efforts to stabilize the island’s power grid and prevent future outages. The Department of Energy’s $365 million award is further proof of this commitment. These funds will help support emergency activities to increase grid reliability and repair generation assets, delivering immediate results that will benefit all 3.2 million Americans in Puerto Rico.”
According to DOE officials, this move is intended as a step toward providing stable access to energy while continuing collaboration with local authorities.
This financial allocation comes from the Puerto Rico Resilience Fund (PR-ERF). The funds were initially awarded by the Biden Administration in December 2024 for rooftop solar projects planned for 2026 construction but are now redirected following a May announcement by DOE about its intent. The shift in use is expected to extend benefits from thousands of people previously targeted by solar installations to millions across Puerto Rico while yielding greater value for taxpayers.
