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Work on a multi-million dollar power upgrade is expected to improve resilience and secure future electricity supply for Queenstown and the Wakatipu Basin.
Two new transformers will be installed at Transpower's Frankton substation and the high voltage transmission lines that feed the region from Cromwell will be upgraded.
The joint investment involving Transpower, Aurora Energy and PowerNet was expected to cost between $24 million and $30m.
Transpower Grid Development general manager John Clarke said the power companies had been keeping an eye on the longer term electricity needs of the region and working closely on solutions.
"It's essential the power system can meet future demand for electricity in the Queenstown and Wakatipu region, which continues to grow," Clarke said.
"The upgrades announced today will also increase the capacity of the line and the associated work required will add some additional resilience to this line route. Other longer term solutions will be needed in the future."
The companies expected to be able to meet demand until this work was completed in mid-2025, he said.
"New infrastructure will ultimately be required both for further power capacity increases and improved resilience as we all become more and more reliant on electricity in the drive to decarbonise our economy."
The upgrades will increase Frankton substation's capacity by more than a third.
PowerNet chief executive Jason Franklin said it would include additional flood resilience measures for the substation.
"Given the number of recent weather-related events, I think we'd all agree that reducing flood risk and increasing resilience is a priority, given our dependence on this critical site."
Aurora Energy chief executive Richard Fletcher said the population and economy has grown and would continue to do so.
"We all expect power to be there at the flick of a switch, and we want it to have been generated through renewable resources," he said.
"The upgrades enable Queenstown to enhance its green tourism credentials by enabling electric vehicles and low carbon heating, as well as reduce the potential threat to our tourism industry that could be the result of significant unplanned power outages."
The transmission line between Cromwell and Frankton undergoes regular checks to ensure it remains reliable.
Any added resilience work, including possible new lines into the Wakatipu Basin, will take time as there were strict environmental controls in place.
Queenstown Lakes District Mayor Glyn Lewers said it was an important first step to meet the projected growth in the district's demand but they needed to make the most of their momentum and find opportunities for renewable energy generation.
"This investment will provide surety of capacity through the traditional supply model. The next phase will be to focus on how we ensure resilience and sufficient supply to meet our decarbonisation objectives," Lewers said.
Construction was expected to start this year.
