Aurora Energy plans to build a power substation near Omakau, part of the company's $122 million investment planned for Central Otago and Queenstown over the next decade, were considered at a hearing yesterday.
Delta general manager of asset management Derek Todd said it was expected the substation would cost about $5 million to $6 million, and based on present electricity demand growth, it would be needed within three years.
Delta manages Aurora's energy network and both companies are owned by Dunedin City Council.
Ahead of the hearing, land use approval for the substation, to be built about 1km east of Omakau, was recommended by a Central Otago District Council planning consultant, David Whitney.
Mr Whitney's recommendations included some conditions based on the objectives of the substation's construction.
Those included providing for future electricity load growth, safe and reliable distribution of electricity to areas in the Manuherikia Valley and the Ida Valley, the control of electricity flow over the network and transformation of electricity from high to lower voltages.
If the hearings panel was to decide in favour, about 4100sq m of land would be designated for the construction of a 33/11kV substation.
The new substation, located next to State Highway 85, would replace an existing one on the Ida Valley-Omakau road.
The site was chosen for its proximity to Aurora's overhead line network, and its distance from residential areas.
It would provide security to electrical supply and allow growth in the area.
Mr Todd said historically, peak demand had been in winter.
However, as irrigation in the area increased, so did demand, and the peak was now in summer.
It was also not on the Manuherikia River flood plain like the present substation.
The new Omakau substation was included in Aurora Energy's 10-year asset management plan.
