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"We are all concerned with the well-being of the Americans that live in Puerto Rico, and we continue to look for ways to engage with the Commonwealth and work collaboratively in the ongoing recovery effort," the bond holder group said last week. The authority's bond holders could face steep losses after the disaster wiped out the assets underpinning their investments. Massachusetts-based research firm Municipal Market Analytics predicted that Puerto Rico's federal oversight board would "ultimately turn to a private sector partner" to execute a "partial or complete privatization" of the Puerto Rico Electric Power Authority, known as PREPA.īondholders last week offered a $1 billion loan to PREPA, which rejected the offer aimed at jump-starting the rebuilding process.

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Since Maria wiped out the island's power distribution network, many critical institutions such as hospitals and drug manufacturing plants have been operating on generator power. The island got only 2% of its electricity from renewable sources, compared to 14.9% for the whole U.S. In 2016, Puerto Rico burned oil to generate 47% of its electricity, compared to only 0.6% for the entire U.S., according to the U.S. Pundits have suggested that Maria's destruction paradoxically represents an opportunity for Puerto Rico to reimagine its unreliable and polluting electrical infrastructure. More: Why you can't ignore Puerto Rico's bankruptcy More: 'Wipe out' Puerto Rico debt? Hedge funds, residents at risk of losses More: Puerto Rico health system on life support two weeks after Hurricane Maria More: 6 reasons why Puerto Rico slid into financial crisis More: Tesla eyes hurricane-ravaged Caribbean, could shape power grids

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The exchange comes amid tremendous uncertainty over how to restore the Puerto Rican grid, which was already dilapidated and bankrupt before Maria. "I would be happy to talk," Musk replied Friday. "Do you want to show the world the power and scalability of your #TeslaTechnologies? PR could be that flagship project." Musk's suggestion drew the attention of Puerto Rico Gov. any commercial stakeholders and, most importantly, the people of PR."

"Such a decision would be in the hands of the PR govt. "The Tesla team has done this for many smaller islands around the world, but there is no scalability limit, so it can be done for Puerto Rico too," Musk said Wednesday in a tweet. Now that rebuilding effort wasn’t perfect, but the speed with which the city bounced back is a well documented case of effective recovery.Watch Video: Puerto Ricans struggle in aftermath of Hurricane Maria The best example is probably what happened after the 1906 San Francisco earthquake destroyed much of the city and the private sector began to rebuild quickly and without waiting for much government direction or aid. This is a new approach in many ways, but perhaps this private response to catastrophe rebuilding in the face of a criminally-incompetent response from Washington, DC is actually a return to America’s historic roots. It’s going to be demonstrating its abilities to create an investment worthy tool for disaster recovery.

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Again, whether Alphabet does this for free or at cost isn’t the point. Google parent Alphabet has just secured FCC approval to float large balloons over Puerto Rico to restore cellular service.

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But even by his standards, his offer to help salvage and upgrade Puerto Rico’s power grid in the wake of Hurricane Maria is a master stroke.Īnd Musk isn’t alone. with power outages.Įlon Musk has a remarkable sense of timing. And with the increased ferocity and frequency of storms as a result of climate change, it’s urgent that they get away from the antique, centralized power grids that plague the continental U.S. Too many island nations spend a major portion of their budget important fuel oil, when they have a wealth of solar energy available. The island’s governor promptly responded: “ Let’s talk.”ĭistributed, solar-powered “micro grid” power is desperately needed on thousands of islands worldwide, as Musk well knows. On Twitter, Musk said that his technology, which powers several smaller islands, could be scaled up to work for Puerto Rico. Given the disastrous disaster response of the federal government, good news like this was very welcome. A casual comment on Twitter by Tesla CEO Elon Musk about rebuilding Puerto Rico’s power grid using solar technology is being treated seriously by the storm-ravaged island’s top elected officials.