A 10-year plan to invest up to $510 million upgrading the Waitaki Power Station will breathe new life into the iconic asset, Meridian Energy says.

The upgrades will set the 92-year-old station “up for another lifetime”, increasing output and making it more earthquake proof, the energy firm said in an announcement on Wednesday.

All seven turbines, generators and headgates will be replaced as part of works, due to completed by 2036.

Meridian chief executive Mike Roan said the investment would “breathe new life into this iconic asset” while Waitaki Mayor Mel Tavendale said the mega project would be “transformational” for the district and bring jobs with it for the community.

The investment of between $440 and $510 million will see the station’s available capacity scaled up from 105MW to 120MW.

The power station currently generates enough electricity for around 51,000 homes.

Two main contractors have been appointed: international hydro generation firm Voith Hydro, which will supply turbines and generators, and New Zealand-owned Gentec Solutions, which will cover headgates and other works.

Mr Roan said: “As well as increasing generation output, this upgrade will improve seismic resilience, operational reliability and long-term station performance.”

He added: “Hydro generation has an even more vital role to play in our energy system as New Zealand transitions away from thermal fuels and increases intermittent wind and solar generation.

"More system firming is essential and, as part of the Waitaki Power Scheme, the station benefits from the reliability of New Zealand’s biggest battery, Lake Pūkaki.”

It was too early to say how many local jobs the project would create, a Meridian spokesman said in response to a query from the Otago Daily Times.

Details of this would become clear during the detailed design process, which will take place over the next 12-18 months, he added.

Mrs Tavendale said the half-a-billion dollar project was “fantastic news” for the Waitaki.

"It is going to bring jobs and opportunities for our community.

“It is really good to acknowledge the history that it plays in our Waitaki story.”

Mrs Tavendale said she was “really excited about the prospect of what it could bring for the community”.

"It’s such a positive thing.”

The hydro station will continue to operate during works, with unit outages “carefully planned to minimise impact on generation”.

The project is part of a broader programme of work to upgrade Meridian’s assets, including others on the Waitaki Power Scheme.

The Waitaki Power Station was constructed using manual labour during the 1930s Depression and started generating electricity in 1935.