LS Power Breaks Ground on Bay Area HVDC Project

LS Power Grid California marked the start of construction on two major Bay Area transmission projects on 20 May 2026, with groundbreaking ceremonies held in San José and Fremont. The Power Santa Clara Valley and Power the South Bay projects form part of a broader $2 billion programme — known collectively as "Power the Bay" — serving Alameda and Santa Clara counties in Northern California.

The centrepiece of the programme from an HVDC perspective is the Power Santa Clara Valley Project, which will deploy high-voltage direct current technology to connect two new converter terminals — designated Skyline and Grove — via an approximately 12-mile underground transmission line running through San José. Regulatory filings with the California Public Utilities Commission (CPUC) confirm the underground DC link will operate at 320 kV, with the Grove terminal sited adjacent to the existing PG&E Metcalf 500 kV substation in the south, and the Skyline terminal connecting to PG&E's San Jose B substation in the north via a short 230 kV AC tie line. Each terminal will house voltage source converter (VSC) HVDC equipment, converter transformers, and associated AC switchgear. LS Power has described the HVDC technology as rare in the United States, noting that it provides greater controllability of power flows and operational flexibility for the California Independent System Operator (CAISO) compared with conventional AC alternatives.

The companion Power the South Bay Project will construct a new 12-mile, 230 kV AC transmission line — partly overhead, partly underground — linking the existing power systems in Fremont and Santa Clara to create an additional high-capacity corridor within the Bay Area network. Together, the two projects are rated at a combined capacity of 1,000 MW, sufficient to serve approximately 750,000 homes.

Both projects were selected by CAISO through competitive procurement processes conducted pursuant to FERC Order No. 1000. LS Power Grid California was chosen in 2023 from five qualified proposals for Power Santa Clara Valley and six proposals for Power the South Bay, in each case on the basis of cost-effectiveness and delivery risk. The need for the HVDC connection was first identified by CAISO in its 2021–2022 Transmission Plan, approved by the CAISO Board of Governors in March 2022.

Construction on both projects commenced in spring 2026, with energisation targeted for 2028. A third project in the programme — the Power the Valley Connector, a 7-mile 230 kV underground line connecting Silicon Valley Power's Northern Receiving Station to PG&E's San Jose B substation — was awarded to LS Power Grid California by CAISO in April 2026, following selection from five qualified proposals. Construction on the Valley Connector is targeted for 2028, with energisation anticipated in 2030 at an estimated cost of $150–200 million.

Since 2020, LS Power Grid California has received seven competitive transmission awards from CAISO totalling more than $2.5 billion in planned infrastructure investment across the state. The company's Orchard Substation was energised in 2025 to support reliability in the San Joaquin Valley, and the Fern Road Substation is expected to come online later in 2026. LS Power Grid as a whole operates seven transmission utilities across the United States and has built more than 780 miles of high-voltage transmission, with a further 400-plus miles in construction or development across nine states.

The Power the Bay programme is expected to generate more than $650 million in local and state tax revenue over the coming decades and will create around 300 union construction jobs during the build phase. LS Power has committed annual franchise fees to the cities of San José, Fremont and Santa Clara, and made a $2.5 million upfront payment to the City of Fremont for the use of city-owned land during construction, with those funds designated to support a new community centre in Fremont's Central Park.