Aurora Energy's new Carisbrook substation, which will supply electricity to about 3600 homes in South Dunedin, was officially opened yesterday.
While still operational, the old Neville St substation, built in the late 1940s and early 1950s, was decommissioned in December.
The new substation, built just across the road, is part of a $15 million two-stage project which includes the building of the substation and the installation of 2km of high-voltage underground cables in South Dunedin.
It will take in electricity at 33,000kV and convert it to 6600kV to distribute to local transformers, which convert it to 230 volts for use in homes and businesses.
Former Dunedin Electricity Board employee Ritchie McDonald (86) said the new substation was a world away from the original which he helped build as a young apprentice.
"That was done back when engineers ruled the roost and everything was belt and braces and fail safes ... then you look over here at the new one and think, how did it cost so much?''
Auroa Energy chief executive Richard Fletcher said the new substation was part of the lines company's plan to build a safer, more reliable network. It would cater for increasing levels of electricity demand and minimise failure risks.
The company has a planned capital expenditure budget of $790million for the next 10 years to upgrade and replace its ageing infrastructure.
There were a number of options being explored for the old substation, including turning part of it into a museum.