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U.S. energy infrastructure developer LS Power has been selected to finance, construct, and operate a new underground transmission project in California’s Bay Area, aimed at improving grid reliability and meeting rising electricity demand.

The project was awarded by the California Independent System Operator, which chose LS Power’s affiliate following a competitive selection process.

The development involves a 230 kV underground transmission line spanning approximately seven miles, connecting Silicon Valley Power’s Northern Receiving Station to Pacific Gas and Electric’s San José B substation.

The project is estimated to cost between $150 million and $200 million, with a required in-service date of June 2030.

According to LS Power, the investment is designed to “strengthen power infrastructure and improve electric grid reliability across the Bay Area.”

Commenting on the award, Paul Thessen, President of Development at LS Power, said:
“We appreciate CAISO’s continued confidence in LS Power through this competitive selection.”

He added:
“We have consistently delivered on our commitments in a timely manner, and this project builds on our growing footprint in California and extensive experience successfully developing transmission projects across the country.”

The project will be developed in collaboration with PG&E, which is expected to own, operate, and maintain the infrastructure once it is energised.

Underground transmission lines are increasingly being deployed in urban and high-demand regions, offering benefits such as reduced land use impact and improved resilience compared to overhead lines. The project also supports growing electricity demand in the San José area, driven by population growth, electrification, and expanding technology industries.

More broadly, the investment reflects a trend toward modernising transmission infrastructure to support reliable electricity delivery and enable the integration of renewable energy sources.

Source: finance.yahoo.com