Puerto Rico’s Energy Bridge: Natural Gas

Like an island vulnerable to frequent fainting spells, Puerto Rico deserves a resilient and reliable electrical network. Building such a network begins with guaranteeing energy security for critical infrastructure, such as hospitals and storm shelters. Natural gas (NG) can help alleviate island power grid challenges by providing back-up redundancy, fuel diversification and other critical services (so-called auxiliary services) which are necessary to maintain a reliable network. If successfully implemented, truck or storm-proof gas distribution pipeline networks it would serve as a bridge to a stable grid and lay the foundation for the 100 percent renewable energy goal outlined in the Ministry of Energy PR100 report.

Puerto Rico today needs additional electricity generation to enable critical planned unit maintenance before another major storm devastates the island or grid failures cause irreparable damage to the local economy. Distributed natural gas generation is well positioned to provide this fast and efficient support to critical infrastructure and the grid in general through backup and ancillary services. While large natural gas generators require extensive and expensive bidding and design processes, smaller generators are much easier to source and quicker to install. They can also be combined to provide similar services in bulk. NG generators are also more convenient to operate than diesel ones air quality is a concern.

Additionally, if done strategically, new natural gas generation is well-suited to meet Puerto Rico’s net-zero energy goals. Renewable energy sources and on-site batteries can supplement power generation. At the same time, a transitional plan from natural gas to hydrogen, biogas or green methanol would provide a clear path for the continued exploitation of all production assets in the future with zero net consumption.

To maximize the utility of NG, the Puerto Rican government should borrow Puerto Rico Office of Energy (PREB) with the establishment and supervision of the construction of the natural gas distribution network as a bridge to a resilient and reliable energy future. This strategy should include a plan for the distribution of natural gas from liquefied natural gas (LNG) terminals to critical nodes, starting with critical infrastructure and expanding to other regions that are chronically short of production. There are examples of critical infrastructure—such as hospitals and other energy sensitive ones industry—that install natural gas distribution and production. PREB should also enter into contracts for natural gas producers to provide ancillary services when required electrical network. Also, PREB should assess and plan the necessary transition from natural gas to a carbon-neutral gas alternative.

Until such a transition plan is implemented, the use of Puerto Rico’s two existing LNG terminals will provide immediate benefits, as these terminals already have the capacity to supply cleaner fuel than the current fleet of emergency diesel generators. In the mainland United States, many utilities are including rapidly deployable generation resources as an integral part of their plans to transition to net zero in 2050—for example, Xcel in Minnesota and Florida Duke Energy.

While PR100Net zero by 2050 remains a worthy goal, and should renewable energy initiatives continue, Puerto Rico can and must address more pressing needs. With NG, it can do this while also better positioning itself for the future. Natural gas will allow the island to increase its resilience, enable needed grid repairs and pave the way for a net-zero emissions future.

Ismael Arciniegas Rueda is a senior economist at the RAND Corporation.

Andrew Starr is an engineer at RAND.

Frank Andujar Lugo is a technical analyst at RAND.

Robert Jolly is a SkillBridge research fellow at RAND.

Image: Fahroni / Shutterstock.com.

Source link