An announcement from ASX-listed renewables developer MPower this afternoon will see the state's renewable penetration increase further as the Liberal government looks to transition to 100% renewable over the next decade.

MPower kicked off the new year beginning development on two five megawatt solar farms. The company told the market today is had secured Limited Notices to Proceed allowing for the preliminary designs and land activities.

The renewables developer has a strategic plan targeting smaller scale solar projects of around 5MW each. According to the company this is in part due to the relative ease in connecting smaller sized projects to the grid.

MPower plans to sign an engineering, procurement and construction contract for the two projects imminently. The estimated value of the contracts is approximately A$9 million.

"MPower has developed an enviable capability in the successful delivery of 5MW solar farms and continues to strengthen its order book in the growing renewable energy sector" MPower chief executive Nathan Wise said.

"A key focus for MPower has been to build strong relationships with asset owners who prioritise power system reliability and understand the value of a well delivered project."

At 3.30 this afternoon South Australian grid demand for energy reached 1163MW. Only around 25% of the states energy supply came from gas (292MW), with the rest coming from renewables.

Small solar contributed 701MW, while large solar was much less at 225MW and wind generation contributed 575MW.

MPower shares were worth 2 cents. The company has a market cap of $3.18.