In a statement to the Oamaru Mail this week Network Waitaki chief executive Dylan Andrews said North Otago faced "a capacity constraint in our region, with decreasing headroom each year".
"As a summer-peaking network, there is a significant risk of disruptions to our customers during dry, hot summers if we do not take action."
He said the line company was working closely with Transpower to explore future options for strengthening supply in the area.
"This includes potential development of a new GXP [grid exit point] near the planned Black Point Solar Farm.
"Working together provides an opportunity to ensure that any future investment is appropriately sized, designed and timed to meet the needs of all parties."
As nothing is confirmed, there are no strict timelines for the grid exit point, Mr Andrews said.
"We are committed to ensuring best value for our customers by meeting their needs at the lowest cost options. We look forward to further discussions with Black Point Solar in the future."
Black Point Solar Farm is one of 149 projects included in the government’s Fast-track Approvals Act passed into law in December.
The company behind it, Black Point Solar, is aiming to build the solar farm in Black Point, about 35km inland from Oamaru.
It said in its project application, if built, the solar farm would consist of about 380,000 solar panels across 240ha and would generate enough energy to power roughly 38,000 homes.
The solar farm will connect to the national grid by way of the new grid exit point Network Waitaki is planning.
The goal is to construct the project in its entirety once the necessary consent approvals and project finance is in place.
This is expected to take about two years once approvals have been granted.
Black Point Solar has a lease agreement with the landowners which allows for a three-year period to obtain resource consents, project financing and complete the development process.
The site is presently a deer and sheep farm.
"As part of the project, sheep or other compatible farming will continue under and around the solar panels, maintaining the productive potential of the site," the application reads.
It also said the applicants have undertaken initial discussions with Network Waitaki, Transpower and the Waitaki District Council, Waitaki MP Miles Anderson and the owners of properties adjoining and opposite the site.
Mr Andrews confirmed Network Waitaki has had "high-level discussions" with Black Point Solar.
However, an Environment Protection Authority Fast-track spokesperson said last week Black Point Solar Farm had not lodged a substantive Fast-track application.
At present the project is not proposed to be staged.
