An artist's impression of what the proposed  $4.5 million Te Maunga electricity substation will look like once completed.

Powerco is currently working through the consenting process to build a new electricity substation at a site in the Tauranga suburb of Papamoa.

Powerco Electricity Planning Manager Michael Whaley said the Company was investing millions of dollars each year into the Western Bay of Plenty's electricity infrastructure to accommodate current and forecast growth in demand for electricity as well as improving network performance.

"We understand the concerns people have with new substations being built in suburban areas and have worked to mitigate and minimise any perceived adverse effects. This will be a quiet, safe and tidy substation that blends in with the surroundings."

Mr Whaley said Powerco was committed to being a good neighbour and working proactively to build a positive relationship with people living near its facilities and welcomed their feedback.

"The substation will have fencing, plantings and a facade designed to a contemporary residential style. There will be no overhead lines coming into or out of the site and the transformers will be housed within the building."

Mr Whaley said Powerco had looked at a wide range of options and alternatives to building the substation on the proposed site on Roxbury Terrace.

"The Te Maunga substation project is estimated to cost around $4.5 million. We plan to install two transformers which will take electricity at 33,000 volts and reduce that to 11,000 volts and then feed it out to customers in areas of Papamoa, north of Evans Road, and through to Mount Maunganui. The new facility will also supply customers in parts of Arataki," Mr Whaley said.

This project forms part of Powerco's wider plans to ensure Tauranga's energy infrastructure continues to perform reliably and meets demand forecasts based on the region's Smart Growth plan, which was developed by the local territorial authorities.

Detailed plans will be available on the Tauranga City Council's website in the next few days to allow potential submitters on the plans to gain a full understanding of the project.

Powerco is New Zealand's second largest electricity and gas distribution utility with around 400,000 consumers connected to its networks. Powerco's electricity networks are in Tauranga, Thames, Coromandel, Eastern and Southern Waikato, Taranaki, Wanganui, Rangitikei, Manawatu and the Wairarapa. Its gas pipeline networks are in Taranaki, Hutt Valley, Porirua, Wellington, Horowhenua, Manawatu and Hawke's Bay.