Puerto Rico Secures $150K for Rural Microgrid Project

  • Puerto Rico secures a $150,000 U.S. Department of Energy grant for the “Microgrid of the Mountain” project, blending hydroelectric and solar power in rural areas.
  • The project connects four municipalities, Adjuntas, Jayuya, Lares, and Utuado, using local hydroelectric plants and solar systems to reduce fossil fuel dependence.
  • The next phase of the SOLVE IT program, scheduled for July 2025, will provide $500,000 to three selected projects to complete technical plans and start implementation.

Puerto Rico has taken a significant step toward boosting energy resilience in rural areas, securing a $150,000 grant from the U.S. Department of Energy. The grant, part of the second phase of the SOLVE IT program, funds the “Microgrid of the Mountain” project, which blends hydroelectric and solar power to deliver sustainable energy in remote regions.

The project will connect the municipalities of Adjuntas, Jayuya, Lares, and Utuado through a shared microgrid. This infrastructure combines local hydroelectric plants with photovoltaic systems to ensure a stable electricity supply and reduce reliance on fossil fuels.

The hydroelectric plants at Caonillas and Dos Bocas play a central role in the project. These plants, which once generated 43 MWh, now produce just 6 MW. The Cooperativa Hidroeléctrica de la Montaña plans to refurbish them at an estimated cost of $120 to $150 million and aims to raise their capacity beyond 50 MWh. These plants will power isolated communities and support the broader effort to strengthen Puerto Rico’s energy grid.

In July 2025, the SOLVE IT program will provide $500,000 to three selected projects. This funding will support the completion of technical plans and the beginning of project implementation. However, each competing project must demonstrate its economic impact and ability to meet the needs of local communities.

Puerto Rico continues to move toward energy independence by focusing on localised energy solutions. The island has experienced frequent natural disasters, which expose the vulnerabilities of the centralised grid. Microgrids offer a more resilient alternative, providing reliable electricity to rural and remote areas and reducing dependence on imported fossil fuels.

The “Microgrid of the Mountain” project highlights Puerto Rico’s commitment to integrating renewable energy sources. By promoting solar and hydroelectric power, the project aims to reduce energy costs and create a cleaner, more stable energy supply for rural residents. This model could serve as an example for other regions facing similar challenges.

Puerto Rico’s long-term energy strategy includes a shift away from centralised grids that remain vulnerable to hurricanes and other disasters. Building local, decentralised systems will improve energy security and resilience across the island. The integration of renewable energy sources aligns with the territory’s broader goal of increasing the use of clean energy.

This project represents a critical step in Puerto Rico’s vision for sustainable energy. By investing in initiatives like the “Microgrid of the Mountain,” the island seeks to establish itself as a leader in energy innovation in the Caribbean. Puerto Rico aims to create a secure, resilient energy future that benefits rural and urban communities alike.

With this $150,000 DOE grant, Puerto Rico continues to promote reliable, renewable energy in rural areas, laying the groundwork for future projects that prioritise energy independence and resilience.

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