"This is a major announcement for Roaring 40s and Hydro Tasmania," said Hydro Tasmania chair David Crean.

"It is the first step in what we believe will be a significant strategic move into the Asian market, and China in particular."

Roaring 40s has partnered with Chinese company Datang Jilin Power Generation to build the 50MW Shuangliao wind farm in China's Jilin province on the Inner Mongolian border.

"After an intensive process of investigation and evaluation, Hydro Tasmania's board has approved involvement in the project, and has received ministerial approval to enter into the joint venture," said Crean.

"We are pursuing a strategy of renewable energy development in Asia and this project is the first of a number that have been identified as commercially attractive.

"The project gives Hydro Tasmania and Roaring 40s a very strong profile in the rapidly growing Chinese renewable energy market. It could also help other Tasmanian businesses keen to develop a relationship with China."

The project was born from a cooperative agreement signed by Hydro Tasmania under the Australia-China Climate Action Partnership in Canberra this year, witnessed by senior Chinese Government officials.

"The Chinese economy is growing rapidly, greatly increasing energy demand, and China is embracing renewable energy as a means of meeting that demand," Crean said.

"China has targeted 20,000MW of wind energy by 2020. This is about half of Australia's total generating capacity from all sources.

"Roaring 40s' renewable energy development capability and experience are recognised by the Chinese as key strengths in these new, very large markets."

Construction will begin on the project before the end of the year, with commissioning due by the end of 2006.

CLP Power Asia has become a 50% partner with Hydro Tasmania in Roaring 40s with the recent agreement to invest more than $A110 million.