LUMA signs deal for interconnection points to add 990 megawatts of energy

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LUMA Energy, the private operator of the island’s electric power transmission and distribution system, announced on Thursday an agreement with Linxon US LLC and its partner AtkinsRéalis Caribe to construct nine interconnection points necessary for integrating new generation sources.

The collaboration will add more than 990 megawatts (MW) of clean energy and over 700 MW of storage capacity to the island’s electrical system, according to a statement.

The increase in renewable generation is expected to save customers millions of dollars by reducing reliance on fossil fuels and mitigating price volatility. Additionally, it will help decrease interruptions related to electrical generation, LUMA said.

“This agreement between LUMA and the construction companies is a crucial step toward addressing these challenges and moving toward a cleaner, more resilient, and affordable energy future for Puerto Rico,” LUMA President & CEO Juan Saca said. “By integrating nearly 1 GW [gigawatt] of renewable energy and more than 700 MW of storage, we not only stabilize the electrical grid but also ensure a more resilient and sustainable system for generations to come.”

According to data reported to the Puerto Rico Energy Office, the system experienced over 100 load reduction events in 2024 due to insufficient or sudden generation failures.

“We are confident that the interconnection process will be completed without delays, finally ending the service interruptions caused by insufficient generation that we have all endured,” said engineer Julián Herencia, executive director of the Renewable Energy Producers Association. “These projects will provide additional energy to the system, reducing current generation limitations.”

The nine interconnection points will provide the necessary infrastructure to rapidly integrate renewable energy projects, advancing Puerto Rico’s energy goals outlined in the Integrated Resource Plan (IRP), Herencia noted. The collaboration highlights the potential of public-private partnerships to transform the island’s energy landscape, he added.

“This historic agreement reflects the shared vision of LUMA and the Association of Renewable Energy Producers (APER) to build a modern, resilient, and sustainable energy future for Puerto Rico, setting a new standard for renewable energy development in the region,” Herencia said.

According to the APER, the new capacity represents over $4 billion in private investment, creating more than 4,200 construction jobs and 139 permanent jobs.

“Without a doubt, the transition to clean and reliable energy indicates that Puerto Rico’s energy model is already changing,” Herencia added. “We are ready to provide the island with the energy stability it truly needs.”

Nicolas Sanloup, president of Linxon US LLC, said the partnership’s “combined expertise in engineering, procurement, and construction will ensure safe, high-quality, and timely upgrades, enabling the integration of renewable energy sources and improving the reliability and sustainability of Puerto Rico’s power grid.”

“Linxon is also investing in the island by opening dedicated operations to support this effort, demonstrating our long-term commitment to Puerto Rico’s energy future,” Sanloup added.

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