Powering a Sustainable Future for Puerto Rico 


Puerto Rico is fast becoming a hotbed for sustainable and renewable energy. Through legislation and incentives developed and implemented by the Government, companies are being rewarded for being more efficient. At the same time, tax payers are saving money through lower fuel costs and Puerto Rico is reducing its dependency on oil, paving the way for a cleaner tomorrow.

Solar thermal electric, photovoltaic, landfill gas, wind, biomass, hydroelectric, geothermal electric, municipal solid waste, hydrogen, tidal energy, wave energy and ocean thermal power generation.  These are just a few of the renewable energy sources that Puerto Rico has set its sights on developing through a series of powerful incentive programs aimed at attracting green energy companies.
 
Strong incentives have existed in Puerto Rico since 2008 for the manufacture of renewable energy equipment. More recently, the island passed legislation incentivizing the generation of renewable energy, aimed at drastically cutting back its overwhelming dependence on fossil fuels for its energy needs, currently at 90%.  

In July 2010, additional legislation - Laws 82 and 83 - was passed to help the island meet its target of 15% renewable energy production by 2020 and 20% by 2035. The Renewable Portfolio Standard (RPS) requires the island's retail energy providers to produce or purchase a specified percentage of their electricity from renewable energy sources.

The legislation also calls for the Government of Puerto Rico to co-invest $290 million in renewable energy projects and other initiatives over the next 10 years through a Green Energy Fund (GEF). The fund began with a $20 million injection in 2011.

Through the GEF, the Puerto Rico Energy Affairs Administration will offer cash rebates of up to 60 percent for individuals, and 50 percent for companies, on the cost of installing residential and industrial projects not exceeding 1 MW of capacity.

For companies dedicated to the production of renewable energy on a commercial scale, the new Incentives Act also provide tax benefits in the form of significant partial exemptions from income taxes, property taxes, and municipal taxes; super-depreciation of buildings, structures, machinery, and equipment; and eligibility for tax-credits related to the use of locally-manufactured products, job creation, and research and development.

Energy Incentives

"Energy Diversification by means of Sustainable and Alternative Renewable Energy Act" - (Act No. 82 of 2010)
  • Creates the first-ever Renewable Portfolio Standard in Puerto Rico
    • Promotes a generation of renewable energy, with compulsory short, medium, and long term goals:
      • 12% renewable energy production by 2015
      • 15% by 2020
      • Requirement for retail energy providers to establish plans to reach 20% renewable energy production by 2035
  • Creates Renewable Energy Certificates (RECs) to make the financing of industrial-scale renewable energy projects feasible
"Green Energy Incentives Act" - (Act No. 83 of 2010)Creates a Green Energy Fund (GEF)
    • Offers incentives for the next generation of Green energy
    • Creates a new industry and frees citizens and businesses from dependence on fossil fuels for energy production
  • Incentives became effective July 2011. These will include:
    • Residential and Small Businesses
      • Up to 60% rebate on installation costs of renewable energy equipment
    • Commercial and Industrial
      • Up to 50% rebate on installation costs of renewable energy equipment
    • Utility scale
      • Access to a Renewable Energy Certificate (REC) market
Click here to apply for the Green Energy Fund.

Major Renewable Energy Projects

I. Vía Verde Project
  • Vía Verde consists of a large pipeline that to transport natural gas to energy generating plants to reduce oil dependency and energy costs for families and increase industry competitiveness.
  • For more information on Vía Verde, click here. 

II. Pattern Energy Wind Farm
  • Major legislation under approval to continue promoting wind farms in Puerto Rico. Thanks to these efforts, Pattern Energy Wind Farm, on Puerto Rico's southern coastline, will be the largest wind energy project in the Caribbean.

III. Renewable Power Generation and Resources Recovery Facility of Energy Answers
  • This facility will have the capacity to process 2,100 tons of resources and recover and recycle 280 tons of ferrous metals on a daily basis.

For more information on investing in renewable energy, please contact us 787-765-2900 or send us an email to infoenergy@prdoesitbetter.com.
 

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