More than 80,000 customers will benefit directly from the improvement works to the power network in the Kitts Green area.
It also strengthens the overall reliability of neighbouring sections of the network, in particular Sparkbrook, which has almost 30,000 connected customers.
Jim O'Sullivan, Director of Infrastructure Services at Central Networks, said: "This is a major project to ensure we can make a reliable power supply even better.
"It's also worth pointing out that we're continuing to invest during the recession and this multi-million pound investment will make sure that Birmingham's power network has the capacity to allow the city to grow once the economy starts to pick up again."
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The overall project will take nine years to complete but the first phase has now been finished.
Phase one involved installing two 132,000 volt underground cables in the East Birmingham area, running to 17km in total, as well as building a new substation in the Kitts Green area and reinforcing the existing Sparkbrook substation.
The majority of the cable route follows the River Cole so we were able to minimise the impact on traffic in the area.
The second phase of the project will run into 2011 and will see a third 132,000 volt cable being installed, from Lea Marston substation to the new Kitts Green substation, and establishing a new high voltage substation to replace the existing Boughton Road substation.
The third phase, a new substation in the Chelmsley Wood area, is still in the planning process and is expected to begin in 2013.
Central Networks has taken many steps to ensure any disruption to local people and the environment is kept to a minimum. At least 6km of cable was installed by directional drilling techniques to avoid digging trenches.
(CD/KMcA)
