Meridian Energy and AGL, the largest renewable energy generation company in Australia, have announced a joint venture to build a $A1 billion windfarm in southwest Victoria.
The 420 megawatt windfarm is expected to be the largest in the Southern hemisphere. It would be finished in 2013.
Meridian chief executive Tim Lusk says recent law changes requiring power retailers to sell a certain proportion of renewably generated electricity, makes the project more commercially viable.
Meridian already has a wind farm development in South Australia.
Standard & Poor's says Meridian's triple B plus rating is unaffected by the development.