Grid Modernization for Electrification
- Project typeUtilities Electric - System Improvement
- Project valueUp to approximately $443 million
Background
Palo Alto provides electricity from a 100% carbon neutral portfolio, and has been in the forefront of efforts to design programs allowing customers to easily use clean energy. The Grid Modernization for Electrification project was developed to enhance grid resiliency and reliability of the electric distribution system, and continue to accelerate the City’s clean energy and decarbonization goals.
Project Description
The Grid Modernization Project involves replacing the existing 1,413 single phase pole top transformers rated less than 50kVA with approximately 1,400 of the same type of transformers rated 50kVA or larger. Additionally, 296,300 circuit feet of open wire secondary conductors in the distribution system will be replaced with aluminum aerial cable. These two design aspects will allow for 100% electrification of end uses in the Palo Alto community, aligning with one of the primary objectives of decarbonization.
Construction includes replacing poles, transformers, aerial wires, some cabinets and underground substructure in the street, sidewalk and Public Utility Easements that extend two to five feet behind the sidewalk or in some backyards. The pilot program was done to help advance the City’s grid modernization and fiber services priorities.
Project Location
The pilot area initially involves about 1,000 homes centered in the northeast part of Palo Alto within Embarcadero Road, Louis Road, Colorado Avenue, Greer Road, and West Bayshore Road.
Pilot: Electric Scope(PDF, 4MB) - completed April 31st, 2025. 908 homes are ready for electrification.
Region GM 08(PDF, 474KB) involves about 250 homes.
Region GM 09(PDF, 307KB) involves about 100 homes.
Region East Meadow Circles(PDF, 3MB) (Fairmeadow District) involves about 300 homes.
Project Status
A pilot area build was underway from February 2024 to April 2025 to determine the feasibility of aligning the electric grid modernization project with the Palo Alto Fiber project. The electric scope is completed and the fiber installation is in progress. View the notification letter(PDF, 384KB) that was sent to impacted customers.
Construction for regions 08, 09, and East Meadow Circles are currently in progress. Construction is expected to be completed by December 2026.
View the Grid Modernization Presentation to the Sustainability & Climate Action Ad Hoc Council Committee from March 6, 2026.
Scope of Work
- Replacing utility poles, electric transformers, and aerial wires
- Installing substructure including boxes for electric lines
- Replacing electric distribution lines and feeder ties from the poles
- Installing pad-mount equipment where possible
- Reconductoring sub-transmission system
- Converting 4kV to 12kV systems
- Reconstructing 60/12kV substations
- Replacing high voltage 115/60kV transformer
Electrification Study
The City conducted an electrification study to evaluate the impacts of projected electrification loads on Palo Alto’s distribution and substation transformers, primary/secondary distribution circuits, and to propose upgrades needed to mitigate potential overloads. The estimated cost to construct the necessary electric system upgrades for a 100% electrification scenario is up to approximately $300 million. Of the nine substations in Palo Alto, the study recommends major design and equipment upgrades at two of the nine substations, and minor to moderate upgrades at four substations to meet projected loads to support 100% electrification.
Learn more about the City's Electrification Initiatives