Origin Energy will buy one of the most advanced wind and energy storage projects in NSW to help plug the gap left by the planned closure of the country's largest coal-fired power station.
The electricity and gas company announced on Friday an agreement with Virya Energy to acquire its Yanco Delta Wind Farm, one of the largest in the state.
Capable of powering more than 750,000 households, the project is forecast to avoid up to 4.5 million tonnes of emissions a year by displacing coal generation.
Origin CEO Frank Calabria said Yanco Delta was a large-scale, advanced wind development project next to existing transmission infrastructure, with key planning and regulatory approvals already secured.
"The acquisition of Yanco Delta represents a major step forward in our journey to transition Origin's portfolio to cleaner energy," Mr Calabria said.
With potential for further expansion, Yanco Delta can quickly bring renewable energy into the market.
The 33,000-hectare wind farm development is located 10 kilometres north-west of Jerilderie in the Riverina district and will have a 1.5 gigawatt wind farm and a 800 megawatt/hour battery.
The purchase price consists of an up-front payment of $125 million and an additional payment of up to $175 million conditional on the project achieving development milestones.
The NSW government is yet to announce whether it will pay Origin to extend the life of its Eraring power station, which is slated to close in 2025.
The plant provides a quarter of the power in a state that is still the nation's largest electricity generator.
