The Australian Government has announced final agreement with AGL on plans to build a $450 million solar power station in far western New South Wales. The project will be built across two sites in Nyngan and Broken Hill in the State's west.

The Federal Government's Australian Renewable Energy Agency will provide $166.7 million and the New South Wales Government will provide $64.9 million.

The project was first proposed four years ago as part of the Solar Flagships programme.

Construction of the 102 megawatt Nyngan component is expected to commence in January 2014, with completion scheduled by mid 2015. Construction of the 53 megawatt Broken Hill component is scheduled to start in July 2014 and to be completed by November 2015. Engineering, procurement and construction services will be by First Solar.

The 155 megawatt project is being described as the largest in the Southern Hemisphere although at least three larger projects are planned or under construction in Chile. Solar farms more than ten times the size are planned for the United States and China.