Iberdrola has started construction of a 317MW hybrid wind and solar farm near Port Augusta in South Australia.
The A$500m project will take 18 months to build and support about 200 jobs during construction.
A total of 20 full-time jobs will be created once construction is completed in 2021.
The project will generate enough clean energy to power the equivalent of 180,000 Australian homes.
It will feature 50 Vestas 4.2MW wind turbines and almost 250,000 solar panels from Longi.
Elecnor will construct the storage areas and access roads, as well as delivering the export transmission line, the substation and wind farm balance of plant.
Sterling & Wilson will construct the solar park.
Iberdrola Australia country manager Fernando Santamaria said: “We have seen quick progress in challenging times, so it is great to have spades in the ground already on our first ever project in Australia.
“Port Augusta is a major commitment in terms of investment and clean energy capacity, both for the Australian renewables market and for Iberdrola’s global project portfolio.
“The South Australian government has worked closely with us during the construction planning, and we were happy to be able to show the Premier and Energy Minister the progress at the site today.
“The project is delivering jobs and significant economic value for the local region.
“The Australian renewables sector as a whole offers great potential and, as a long-term operator, this flagship project highlights our commitment to invest in countries where we see good conditions for clean energy to grow.”
Iberdrola said it is also progressing well with its friendly takeover offer for Infigen Energy.