Transpower has shortlisted three options for reinforcing regional electricity supply to the Lower Waitaki Valley, in the area between Waitaki, Timaru and Oamaru.
An increase in the use of irrigation to enable dairying conversions and more intensive cropping, as well as new industry was pushing regional electricity demand up, while a new Holcim cement plant may also be built near Oamaru, Transpower said.
Capacity of the regional network was now near its limit, and it was forecast that electricity use in the Lower Waitaki Valley may double within 10 years.
The shortlist of options was produced after two years of work involving local lines companies Network Waitaki and Alpine Energy, as well as key groups such as irrigation and dairy companies and local councils, Transpower said.
Possible costs of the options being proposed range between $30 million and $70m.
The basic upgrade option would involve the construction of a new switching station, like a substation, at Glenavy, which is near the mouth of the Waitaki River, and the installation of equipment at Oamaru substation.
A so-called secure upgrade option would include an upgrade of the existing Waitaki to Glenavy and Oamaru to Glenavy lines, and the building of a new switching station at Glenavy.
The third, "regional supply line" option involves the building of a new 110 kilovolt double-circuit regional supply line from Livingstone to Oamaru and the construction of a new switching station at Glenavy.
Transpower general manager grid development John Clarke said the solution must meet the Commerce Commission's grid investment test -- a type of national cost benefit assessment used to select the most economic option.
A consultation pack had been produced, with feedback due by December 3.