According to a recent report from Reuters, the U.S. Department of Energy (DOE) under the Trump administration has announced a redirection of $365 million in federal funds originally allocated for rooftop solar development in Puerto Rico. The funding, awarded during the Biden administration in late 2024, was intended for solar and battery storage projects not scheduled to begin construction until 2026. That money will now be used for immediate power infrastructure needs centered on fossil fuel-based generation.
Puerto Rico’s electrical grid has long struggled under the weight of systemic issues, including bankruptcy of the Puerto Rico Electric Power Authority in 2017, hurricane damage, and aging infrastructure. These vulnerabilities have manifested in frequent blackouts, including one last month that left 134,000 customers without power.
In response to ongoing electricity shortfalls, Energy Secretary Chris Wright issued an emergency order directing the state-owned utility to utilize oil-fired plants to stabilize energy supply. These facilities, while reliant on fossil fuels, are able to provide consistent baseload power—something solar installations cannot offer without extensive and costly storage systems.
The DOE stated that the funding will now support measures that can be rapidly deployed, including:
- Dispatching baseload generation units (primarily oil-fired),
- Vegetation control to protect power lines,
- Upgrading aging grid infrastructure.
The rationale presented by the department emphasized practical impact and scale. In its statement, the DOE noted the redirection:
“will expand access to reliable power for millions of people rather than thousands” and yield “a higher return on investment for taxpayers”
while strengthening the island’s grid resilience.
This action reverses a core initiative from the prior administration, which had allocated the funds for projects that would not deliver any tangible energy benefits for at least two years. These projects, focused on solar panel deployment, were not intended to address Puerto Rico’s pressing energy needs, but rather to support broader policy goals disconnected from current grid conditions.
The change in course indicates a pivot away from speculative energy planning toward established and operational power sources that can address deficiencies immediately. In a territory facing persistent outages and infrastructure decay, the prioritization of reliable baseload power over delayed solar initiatives suggests a reassessment of policy priorities in favor of operational necessity.
This case illustrates the tension between federal policy directives and ground-level energy realities. Puerto Rico’s infrastructure issues require immediate and scalable solutions, not long-term experiments. The DOE’s redirection of funds underscores a recognition that stable power generation remains a foundational requirement—especially in regions prone to natural disasters and systemic outages.
While energy policy continues to be a politically charged issue, the circumstances in Puerto Rico demonstrate that reliability and speed of deployment remain critical considerations—factors that speculative energy projects often fail to address.
Source: Reuters, “US redirects Puerto Rico solar power funds to oil plants,” by Timothy Gardner, May 2025.
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