Pacific Gas and Electric Company (PG&E) and Smart Wires have announced a new project to improve grid reliability and meet growing electricity demand from data centers in San Jose. The project will deploy Smart Wires’ advanced power flow control (APFC) technology to manage thermal overloads, redirect power flow, and increase capacity at the Los Esteros electric substation.
Located in the Alviso community, the substation will see its capacity increase by more than 100 megawatts (MW) through the installation of SmartValve APFC devices, scheduled for completion by late 2025. This upgrade will support the operation of several nearby data centers currently under development.
The California Independent System Operator (CAISO) forecasts a load increase of up to 500 MW in the San Jose region due to data center expansion. While a new transmission line is scheduled for 2032, a more immediate solution was required to ensure reliable power starting in 2025. After reviewing several alternatives — such as reconductoring and energy storage, both deemed too slow and costly — CAISO selected SmartValve’s APFC as the most effective and timely option.
SmartValve mitigates thermal overloads by up to 34%, enabling over 100 MW of additional firm power to be delivered on existing lines. “Working with Smart Wires allows PG&E to efficiently address projected capacity needs while maintaining high reliability for our customers,” said Chad Dupuis, Principal Electrical Engineer at PG&E. “This collaboration highlights our commitment to deploying innovative technologies that enhance our grid's flexibility, security, and resilience.”
SmartValve’s modular, relocatable design allows utilities to rapidly deploy, scale, or reposition the technology in response to shifting demand and new power sources. Even after the 2032 transmission line is operational, the devices will continue to balance power flows dynamically across the grid.
