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Do not connect the two power stations at any point, they will short each other out.
Other than that you can have as many Substations as you want, on seperate grids
Now, that was just some general information.
To your specific problem.
Not enough money
Invalid Location. Maybe you were trying to place it in a forest area but didn't see the trees, thanks to the Utility view, or leftover tree stumps.
You are trying to put it in gang Territory (that would be possible only in a yard or common room)
Nope - not correct. I put mine INSIDE a separate building and they work everytime. Probably just meant they didn't have enough funds to enable the purchase of the unit.
I don't recall it EVER needing to be outside, unless that was a thing before Alpha 22 which is when I started playing...