Meridian Energy and Australian electricity generator AGL have announced plans to build the southern hemisphere’s biggest wind farm.
Meridian will hold a 50% investment share in the A$1 billion 420 MW Macarthur wind farm in southwest Victoria, due for completion in 2013.
Meridian chief executive Tim Lusk described the project as a great opportunity.
"It offers long term, reliable generation revenues which will complement the rest of Meridian’s developing Australian wind portfolio," he said today in a release.
He said that the venture's electricity purchase contracts have been structured to avoid market price and electricity volume risk.
The project received a green light after changes to Australia’s renewable energy target legislation increased confidence in its commercial viability.
According to Mr Lusk, wind generation currently holds a “substantial cost advantage over other grid scale renewable technologies that can be practically deployed in Australia”.
Danish manufacturer Vestas - which has a strong relationship with Meridian in New Zealand - has won the Macarthur contract with its V112-3.0 MW turbines.
Earlier this year, Meridian acquired the 70 MW Mt Millar wind farm in South Australia. The company holds several other wind development sites in Australia.