U.S. Energy Department Redirect $365 Million to Address Puerto Rico’s Grid Resiliency

The U.S. Energy Department on May 21 announced it will reallocate $365 million in funding to tackle Puerto Rico’s grid resiliency and develop access to secure, reliable and affordable power supply. The funding, directed through the Puerto Rico Resilience Fund, will be used to support practical fixes and emergency actions that provide a speedy, more effective resolution to the current crisis, benefiting critical facilities, such as hospitals.

The funding follows the department’s decision to issue two emergency orders for Puerto Rico after the island faced blackouts during April. These orders, issued by the Office of Cybersecurity, Energy Security, and Emergency Response, in agreement with President Trump’s Executive Order Declaring a National Energy Emergency, will unlock emergency protocols and empower Puerto Rico’s government to tackle immediate issues impacting the fragile grid system and prevent further widespread outages ahead of the peak summer demand season.

The first emergency order instructs the Puerto Rico Electric Power Authority (PREPA) to dispatch production units required to enhance baseload generation for the island and maintain grid reliability, reducing the gap in production deficit. The second order instructs PREPA to execute vegetation management actions, including the clearing of overgrown brush, trees, and vines that present risk of shortages and fire.

The funding was originally granted by the Biden administration during December 2024 to support battery storage and rooftop solar installations scheduled to start construction during 2026. The department is now reprioritizing the funding and will reallocate the funds to support technologies that enhance system flexibility and response, supply security, component strength power flow and control, and safety.