Substations are part of a power system in which voltage transformation and switching take place. The need for building a new substation may arise to satisfy the load growth of customers or when the number of outgoing bays that can be connected to the substation is fully engaged. During such conditions, establishing a new substation will be a must. This thesis is developed by observing the problem happened in Amhara Metal Industry and Machine Technology Development Enterprise (AMIMTDE). AMIMTDE power demand for its foundries and factories that going to be established in Bahir Dar city has been out of the capacity of the nearby substation; Bahir Dar substation II. Consequently, the enterprise has been forced to establish its own substation. The first task of the study is collecting primary and secondary data about Bahir Dar substation from Ethiopian Electric Agency and Ethiopian Electric Utility Bahir Dar District. To forecast load, data will be also collected from AMIMTDE. The research work will include study different methods of connections the new designed substation to the existing substation, load forecasting, design using IEEE standards and guidelines on major substation equipment and protection systems. Then by using ETAP software, the output of the design will be modeled, analyze stability problems and take corrective actions when necessary. The researcher will also use SolidWork and Auto Cad software to model lightning protection system and to draw single line diagram of the substation. The output of this thesis may be used as reference material by the enterprise during bidding process and for students who need to work on power quality, transient analysis and other studies on the new substation and on the factories.