THE largest wind farm in the southern hemisphere will be built in south-western Victoria, with backers claiming it will generate enough power to run more than 220,000 homes.
Energy company AGL announced that the 140-turbine wind farm would be built on three properties near Macarthur under a $1 billion deal with New Zealand power generator Meridian.
The project had been on hold since December, when AGL managing director Michael Fraser warned that the renewable energy industry was on the brink of collapse due to a lack of investor certainty.
It was re-ignited in June after the Senate passed the federal government's revamped renewable energy legislation, requiring that roughly 18 per cent of power will come from large-scale clean powerplants by 2020.
Mr Fraser said the Macarthur farm was the largest and most ambitious renewable energy project in Australia since the Snowy Hydro Scheme.
''I think in time this project will really be seen as a landmark project for the transformation to a clean energy future,'' he said at the project's launch in Melbourne yesterday.
AGL said the wind farm would have a capacity of 420 megawatts, reduce annual greenhouse gas emissions by about 1.7 million tonnes and create up to 400 jobs during construction. About 30 people would be employed to run it once it is completed in 2013.
The announcement came as the Victorian Parliament debated a climate change bill that would set a target of reducing the state's emissions by 20 per cent this decade and give the Environment Protection Authority the power to apply greenhouse gas limits to business.
The bill passed the lower house without a vote. The opposition reserved its decision on whether to support the legislation in the Legislative Council, but the bill is expected to pass with the support of the Greens.
Opposition environment spokeswoman Mary Wooldridge said the Coalition supported parts of the bill, including setting a target, but was concerned about the EPA powers.
The opposition and government clashed over the Macarthur wind farm despite both claiming to support it. Premier John Brumby said it was a ''historic occasion for the state''.
Both Mr Brumby and AGL said the wind farm would not have been built in Victoria under the Coalition's policy, which would not allow turbines within two kilometres of homes without the owners' approval.
Mr Fraser said: ''We think that is a bad policy. It would see many, many wind farms in Victoria stillborn and people like ourselves would redirect our investment dollars to other states.''
But Coalition planning spokesman Matthew Guy dismissed Mr Fraser's claim as bizarre. He said the Macarthur farm had community support, including from the opposition.
Denis Napthine, the Coalition member for the seat of South West Coast, which includes Macarthur, said the government should ensure the wind towers were built by Portland manufacturer Keppel Prince. The construction contract was won by Danish company Vestas.
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