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Despite having a rocky reception in some other locations, green energy seems to be favored in Puerto Rico.

It comes in response to energy costs being almost twice as much there than in the U.S. mainland. This is hurting economic development, making it expensive for businesses to locate or remain on the island.

In July 2010, the then-governor, Luis Fortuño, enacted a new law for energy diversification through sustainable and alternative renewable energy and a Green Energy Incentives Act. These set goals for renewable energy, and implemented economic incentives in connection with these endeavors.

Solar and wind power were promoted, and the production of renewable energy is expected to be 12 percent by 2015, 15 percent by 2020 and 20 percent by 2035, according to the new laws as explained by the law firm of Duane Morris.

Additionally, a Green Energy Fund offers rebates up to 60 percent of eligible costs for Tier 1 (0 to 100 KW projects) and up to 50 percent rebates for Tier 2 (101 KW to 1 MW) projects, according to a report from the law firm. 

The government is offering refunds of cash and tax exemptions for alternative energy expenses.

"We need to aggressively encourage the development of renewable energy sources for the benefit of all that reside and work in Puerto Rico. Establishing the right public policy will be the anchor to make it happen," Fortuño said in a statement when the laws were enacted. 

Last year, the AES Ilumina solar power project started offering energy, receiving some $30 million under the Incentives Act. It is the largest solar energy facility in the Caribbean region. 

Pattern Energy's Finca de Viento Santa Isabel (FVSI) wind farm started producing energy, as the first commercial wind power project in Puerto Rico, and the largest wind energy project in the Caribbean region. Another commercial windmill on Puerto Rico’s east coast is under development.

Still another wind farm is under development in Guayanilla, and could produce solar energy as well.

"Renewable energy policies and sound economic incentives are key to attract players of all sizes that can contribute to the creation of a renewable energy industry in Puerto Rico, jumpstart competition and be an active part of the solution. This can lead to innovation-based development and new job creation, while attending concerns over high energy prices and environmental effects of petroleum-based generation emissions," stated José R. Pérez-Riera, a one-time Economic & Business Development secretary in Puerto Rico.

Puerto Rico is also testing smart-grid technology. A few years ago, the Puerto Rico Electric Power Authority partnered with PowerNET International. PowerNET was to try out a High Voltage Broadband over Power Lines (HVBPL) communications network, TMCnet reported.

The new governor, Alejandro García Padilla, also supports alternative energy production. He wants to install solar water heaters on at least half of the island's homes, and install solar panels on government buildings. “We all agree that the current energy situation is unsustainable,” the new governor said recently in a speech to the Manufacturers Association of Puerto Rico. “It is not good for the country in general, it is not good for the industrial climate, it is a deterrent to attracting investment.”

Padilla also wants to see more use of liquefied natural gas.

“Diversification of our energy sources cannot wait any longer,” Fortuño said a few years ago. “The cost of electricity is undoubtedly the number one obstacle to Puerto Rico's competitiveness and one of the main concerns of our people.  We will be relentless in our efforts to reduce the cost of electricity for all and we are confident that our energy reform legislation will have a profound influence across the board.”