Hydro Tasmania has entered into a strategic cooperation agreement with the Chinese energy company Shenhua Group.

The parties want to treble their wind farm operations under the $1.6 billion deal. They plan to develop and build 700 megawatts of wind farms across Australia in the next seven years.

Hydro Tasmania says that it wants to build on its current wind farm projects, such as Woolnorth and Musselroe. A subsidiary of Shenhua already owns a 75% stake in the Musselroe wind farm in Tasmania's north.