Across over 50 interviews with Puerto Rican government and industry stakeholders, energy supply was continuously identified as the main barrier to growth. Puerto Rico’s ageing, centralised, and fossil fuel–dependent power system remains vulnerable to disruption from hurricanes and other natural events. However, new investments in renewables, battery storage, and decentralised co-generation – led by both public and private actors – are starting to build a more resilient foundation.
As a recent example of the scale of the issue, in April 2025, an island-wide blackout left 1.4 million customers without power, underlining the urgency of the grid modernisation efforts now underway. Puerto Rico is gradually reshaping its energy landscape through public-private efforts to stabilise the grid, expand renewables, and modernise transmission infrastructure.
Under the current model, the publicly owned Puerto Rico Electric Power Authority (PREPA) owns most of the physical assets but has ceded day-to-day operation and maintenance to two private operators. LUMA now manages the grid (transmission and distribution) while another firm Genera PR, operates the generation plants. PREPA acts as asset owner and strategic overseer while restructuring its finances.
PREPA’s new leadership is prioritising grid repairs and fuel conversion projects to support a more resilient system in the coming years. “Puerto Rico is making steady progress toward its renewable energy goals,” explains newly installed PREPA Executive Director Mary C. Zapata Acosta.
“Over 250 megawatts of utility-scale solar and about 1,000 megawatts of rooftop solar are already operational. In line with the Integrated Resource Plan, PREPA has signed contracts for around 800 megawatts of additional utility-scale solar and nearly 900 megawatts of battery storage.”
The Main Barrier to Life Science Hub Status
For complex industries like pharma and medtech, energy reliability is not just about keeping the lights on. It ensures critical functions such as stable cold-chain storage, continuous bioreactor operation, precise environmental controls, and uninterrupted data monitoring.
“Puerto Rico’s infrastructure challenges, particularly in energy, remain a concern,” opines Gustavo A. Hermida, president of CIC Construction Group, the island’s leading general contractor. “The privatisation of the electrical system aimed to improve efficiency, but progress has been slow, especially following Hurricane Maria in 2017, which left the grid in a fragile state.”
This could threaten Puerto Rico’s ambitious goals to become a life sciences hub, adds Sascha Herzig, president and CEO of local logistics player ETH Cargo. “Urgent attention is needed to rebuild and modernise the power infrastructure,” he proclaims. “A resilient, affordable, and reliable grid would reduce costs for manufacturers and bolster confidence in the island’s long-term viability as a production base.”
Others agree. “For industries like medical devices, where production processes are sensitive and precision is paramount, inconsistent power supply creates considerable risk,” notes Rodney Colón, president of GMD Airline Services. “Without meaningful improvements to the power grid, it will be difficult to sustain long-term sectoral growth.”
Taking Matters into Their Own Hands
Despite these not-inconsiderable challenges, several firms have shown admirable adaptability and worked to create their own alternatives to the main power grid.
“Many companies in Puerto Rico’s industrial sector – including AbbVie, CooperVision, and Coca-Cola – have already tackled the challenge of high infrastructure costs on their own, installing solar farms, co-generation facilities, and other independent energy solutions,” explains Antonio Medina, CEO of consultancy firm Convergent Strategies and a former member of the island’s Fiscal Advisory Board. Puerto Rico’s industrial electricity rates are around 20–25 cents per kWh; significantly higher than US states like Texas (about 6–8 cents).
For Ella Woger-Nieves, CEO of Invest Puerto Rico, energy reliability has shifted from a challenge to an opportunity, at least for individual companies. “Many companies, particularly those in the life sciences sector, have adopted robust redundancy systems, integrating grid electricity with renewable energy and microgrids to ensure uninterrupted operations,” she notes.
This move toward energy self-sufficiency mirrors steps taken by household industry names globally. Novo Nordisk, for example, has powered all its production sites worldwide with 100 percent renewable electricity since 2020. Merck KGaA sources over 60 percent of its electricity from renewables in China and is targeting 80 percent globally by 2030. AstraZeneca, meanwhile, is rolling out large-scale biomethane and biogas projects to cut emissions across its UK and US manufacturing hubs.
Woger-Nieves continues: “Puerto Rico’s expertise in disaster preparedness, redundancy planning, and cogeneration systems has made it a leader in maintaining business continuity under challenging conditions and multinational corporations often cite the island as a benchmark for operational resilience.”
Consumer healthcare manufacturer Haleon is just one such example. Site Director Elba Cruz explains that Haleon “has established independent power generation capabilities, including our own generation facilities and solar farm infrastructure. This redundant energy system ensures operational continuity during emergencies or major weather events. Such investments are essential for maintaining the uninterrupted manufacturing operations that our global supply chain depends upon.”
Italian medtech manufacturer Copan Group, which holds a major manufacturing site on Puerto Rico, is another case in point. The firm, best known for its medical sample collection and lab automation solutions, is making a USD eight million investment in a cogeneration system, which will allow it to generate its own electricity using natural gas.
“Beyond mitigating external risks associated with Puerto Rico’s energy grid, the system is expected to reduce overall energy consumption by more than 40 percent and generate substantial cost savings, lowering annual energy expenditures by several million dollars,” explains Efraín Rodriguez, COO of Copan Industries, Copan’s Puerto Rico operations. “Rather than perceiving energy challenges as a constraint, Copan sees them as an opportunity to innovate and strengthen its self-sufficiency.”
System Reform: Steady Progress
To fix its persistent energy issues, Puerto Rico is pursuing structural change to the energy grid through privatisation. In 2021, LUMA Energy took over transmission and distribution while another firm, Genera PR, handles generation. A newly appointed “Energy Czar,” Josué Colón, oversees both and explores alternatives to LUMA.
However, this is being carried out against the backdrop of a drawn-out bankruptcy process at PREPA. Only when PREPA exits bankruptcy – which it entered in 2017 – can it tap capital markets, federal billions, and move forward with LUMA and Genera contracts to rebuild the grid.
Resolving this issue “should be a top priority for the island’s new administration,” according to Convergent Strategies’ Antonio Medina.
“There are approximately USD 17 billion in federal funds allocated for this effort, though only about 10 percent has been deployed so far,” says Medina. “Effective coordination is key to making progress. With the ongoing bankruptcy court process for PREPA’s plan of adjustment, I am optimistic that within the next two to four years, we will see a resolution to Puerto Rico’s energy crisis.”
PREPA’s Acosta is rather more circumspect. “If the government can resolve key issues with the private operators, we could begin to see progress within two years,” she outlines. “In four years, we should see more tangible results. But I believe reaching the ideal balance may take closer to ten years.”
“We are working to ensure that the island can offer reliable and affordable electricity to support existing industries and attract new ones,” adds Acosta.
A mood of caution tinged with optimism prevails around what has long been the main stumbling block for the further growth of Puerto Rican life sciences. “No matter how advanced the plant, without a reliable power system, manufacturing becomes extremely difficult,” cautions Carlos Ceinos, president & co-founder of Principia, a Puerto Rico-based consulting firm focused on automation, MES, project management, and validation for the biopharmaceutical industry.
“Thankfully, there are promising plans in place to address this,” he concludes. “With solid infrastructure and a renewed focus on quality, scientific rigour, and efficient systems, I believe we can make real progress.”
