
$17B Modernization Plan for Puerto Rico's Grid - sohkamyung
https://spectrum.ieee.org/energywise/energy/the-smarter-grid/17-billion-modernization-plan-for-puerto-rico-is-released
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jaxelr
This all sounds very optimistic. The reality is that there isn't a certain way
for the current electrical power authority to obtain this kind of capital
and/or assets to execute this kind of plan.

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mkempe
Puerto Rico's government debt was in crisis before the hurricane hit:
outstanding bond debt of $70 billion ($12,000 per capita); very high poverty
rate; and 10+% unemployment.

Maybe they could try to become a new Hong Kong in the Caribbean Sea. Rule of
law, deregulation, free markets even for power production and distribution.
Tourism is a small part of their economy, and never a solid, prosperous plan.

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wallawe
Don't know why you're being downvoted. This has worked well in Singapore as
well. PR already moving in that direction too: if you claim full-time
residency or incorporate there (183 days/yr), US citizens can avoid paying
lots of different types of taxes [1]

[https://www.the2022actsociety.org/index.php/tax-
incentives](https://www.the2022actsociety.org/index.php/tax-incentives)

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evanlivingston
Right, so if there is substantially less tax burden why don't we see rapid
development and prosperity?

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Xylakant
Read up on the Jones Act for example: [https://www.vox.com/policy-and-
politics/2017/9/27/16373484/j...](https://www.vox.com/policy-and-
politics/2017/9/27/16373484/jones-act-puerto-rico)

All shipping to PR has to happen via US companies on ships built in the US
crewed with US citizens, increasing the price of any good shipped there
(basically everything)

Unsuprisingly, not having to pay taxes only offsets that to a certain point
for people with somewhat normal incomes. And having rich people move there is
of limited value if you basically waive all or most direct taxes.

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Aloha
All shipping between US destinations - not all shipping.

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Xylakant
Yes, true, the effect is the same. A ship from overseas passes by PR with
goods for the island. It harbors there. It continues to the mainland, now it’s
in violation of the jones act since it’s transporting goods between US ports.
What are the huge cargo freighters going to do? Unload everything at PR? No.
They’ll pass and unload at the mainland.

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SOLAR_FIELDS
Minor nitpick: they are not technically in violation of the act unless they
actually onload cargo in PR, i.e. they could just offload at PR and continue
on to mainland. The end result is the same though as merely offloading is not
efficient so the ships always go to the mainland instead.

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himom
Given PREPA’s history and turmoil, it’s questionable how efficiently they
would use any amount of money. It’s not an argument for a for-profit monopoly,
but for well-managed, capital-efficient, accountable service provider that
doesn’t extort customers.

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toomuchtodo
Tesla? No different then PPA rooftop offerings. Also sidesteps bondholder
claims if you go straight to customers.

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himom
Tesla doesn’t have relevant expertise or local knowledge to deploy a complete
energy grid suitable for PR. Plus, they would create a profit-centric monopoly
that would end up squeezing poor people. Instead, a non-profit or state-run
monopoly _that is run well, unlike PREPA is a required precondition._ PR can’t
sustain competitors due to its tiny size, so they need an “Amtrak” for most
services.

It would be nice to deploy solar, wind and distributed battery storage along
with cleaner power generation, but it doesn’t have to be Tesla. Costa Rica’s
generation-side has some good clean energy deployments that might make useful
templates.

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greglindahl
I don't know where you're from, but the overwhelming majority of the USA gets
its power from regulated private companies which have a monopoly on
distribution. Your first paragraph makes it seem like you're unaware of this.

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brookside
Seems expensive, especially since they are impressively already using flexbox
which works nicely enough!
[http://www2.pr.gov/prgoven/pages/default.aspx](http://www2.pr.gov/prgoven/pages/default.aspx)

