LUMA's Modernization Projects Continue with Transformer Replacement and Vegetation Clearing

As part of ongoing efforts to transform and strengthen Puerto Rico’s electric grid, LUMA is modernizing substations and repairing transmission lines through a $630 million investment obligated by the Federal Emergency Management Agency (FEMA). These projects include the installation of new transformers, the replacement of outdated equipment —  some operating for up to 80 years — and the repair of critical transmission lines essential to improving the reliability and stability of electric service.

“Currently, FEMA has obligated $5 billion for modernization projects, of which $1.8 billion are in the construction phase. Including over $630 million for substations and transmission lines. The remainder of the obligated funds includes equipment purchases, engineering services, and future projects that are already in the design stage,” explained Pedro Meléndez Meléndez, Chief Capital Programs and Grid Transformation Officer.

He added that LUMA has submitted more than 520 projects for FEMA evaluation and approval, representing more than $12 billion in federal funds. These include ongoing projects, such as vegetation clearing, the Community Streetlighting Initiative and the Smart Meter Initiative.

In the case of substations, three new transformers were recently installed at strategic substations in Bayamón, San Juan and Ponce. Many of the new units being added to the system come from countries like China, Turkey and Brazil, reflecting the complexity of this modernization effort.

Meléndez explained that they ordered 89 key transformers which, after nearly a three-year wait, are being delivered and will continue to arrive through 2026, marking a major milestone in the modernization process. Currently, more than half of the transformers at substations have exceeded their expected service life and maintenance cycle.

“One example of the outdated equipment in the electric system includes a transformer with more than 69 years of service, a transmission breaker —  an essential device used to interrupt faults and restore energy flow — with 87 years of use, and a portable unit with 70 years of use. The portable unit consists of equipment used to temporarily replace a substation,” Meléndez noted.

As part of recent modernization work, 22 breakers have been installed in various substations. A major upgrade occurred at the Costa Sur substation, one of the system’s most important facilities, receiving generation from both EcoEléctrica and the Costa Sur plant.

“We replaced oil-based breakers with more modern gas-insulated equipment that offers multiple reliability benefits, such as lower maintenance costs due to fewer required interventions, reduced fire risk, increased employee safety and the advantage of having readily available replacement parts — unlike many oil-based devices that are now obsolete,” emphasized Meléndez.

Looking ahead, LUMA reported that five additional transformers will be energized in the coming months in the Río Grande, Caguas and Monacillos areas, along with the replacement of seven more breakers —further increasing the grid’s capacity and reliability.

Meléndez also pointed to the logistical challenges of these projects, including transportation permits, limited data on the structural condition of bridges across the island and the impact of global inflation on costs. To address equipment transport challenges, LUMA holds weekly coordination meetings with the necessary agencies to ensure safe and efficient delivery of these large-scale components.

Regarding transmission lines, 47 out of 51 priority segments have been inspected. Additionally, 182 critical failure points have been addressed, and 206 transmission structures have been repaired or replaced. Furthermore, 15 transmission poles on critical lines were replaced in Maunabo, Juncos and Guayama.

Vegetation Clearing Project Begins in Mayagüez, Ponce, Caguas and Arecibo
Separately, as part of efforts to improve grid reliability, LUMA will launch its critical vegetation clearing program in high-density population areas in the Mayagüez, Ponce, Caguas and Arecibo regions.

This FEMA-funded project aims to improve service reliability and reduce the risk of outages caused by tree and brush contact with power lines. In total, more than 660 miles of power lines will be cleared in these four regions during this phase. Community awareness and collaboration will be essential to the success of this initiative, which represents a significant investment in the island’s infrastructure, grid reliability and hurricane season preparedness.