On completion in November 2009, the 71 MW Hallett Hill wind farm will provide enough energy to power 40,000 average households and abate about 250,000 tonnes of CO2.
The Hallett Hill development 170km north of Adelaide will be located 20km from AGL's 95 MW Brown Hill wind farm project, which is currently under construction, providing operational efficiencies.
These two projects, combined with the Wattle Point wind farm in the Yorke Peninsula, will have a combined capacity of 257 MW.
AGL said the wind farm developments would help the company meet its renewable energy generation targets at a federal and state level.
“The Hallett Hill wind farm will significantly add to AGL's capability to self-supply its renewable generation needs and the operation of all three wind farms will supply a substantial component of AGL's obligations under the Federal Government's Mandatory Renewable Energy Target scheme (MRET),” said AGL MD Michael Fraser.
"Hallett Hill would also be eligible to supply renewable energy under the NSW government's proposed scheme (NRET) or proposed new Federal schemes.”
In August, AGL pulled out of a wind farm development in the Gippsland region of Victoria, with the company saying financial reasons were behind the decision.
"Even considering the current and any future emissions trading environment, the economics of the project are less compelling as compared with other projects under investment consideration by AGL," the company said at the time.