The upgrade includes the installation of new power cables under the Mooloolah River to connect the existing electricity supplies at Kawana Waters to those at the Mooloolaba Spit.
The underground cable will travel from Harbour Parade, traverse La-Balsa Park and continue underneath the Mooloolah River to connect the existing cables in Parkyn Parade.
Works will start in November 2007, with construction teams aiming to have the project completed before Christmas.
The 11,000 volt cables will provide increased capacity in the local power network, as well as catering for current and future growth in the Maroochy Shire.