CitiPower, the Australian national energy company owned by global energy group AEP, has signed an agreement to purchase all the electricity generated from a $38 million wind farm under development in Victoria state’s Gippsland region.

The 21 MW Toora Wind Farm being development by Queensland state-owned generator Stanwell Corp is set to become Australia’s largest wind farm when it is completed next May. At a cost of A$25 million ($18.1 million), the wind farm is located 180 km southeast of Melbourne and comprises 20 wind turbines.

CitiPower managing director John Marshall said a premium price would be paid for the renewable energy generated by the wind farm, which is more expensive than the coal-fired power that dominates Victorian generation.

“Customers can elect to purchase the renewable energy by subscribing to CitiPower’s EcoPower programme,” he said.

The renewable energy funded by the EcoPower contributions, where customers pay a premium to buy green energy, is in addition to CitiPower’s legislated requirements to meet renewable energy targets.

Victoria’s first wind generation project, the A$29 million Codrington wind farm in western Victoria was opened by Pacific Hydro Ltd last month.

Stanwell Corp said the Toora Wind Farm would generate enough power for 14 000 households and replace the emission of more than 91 000 tonnes of carbon dioxide produced annually from non-renewable sources such as coal.

Pacific Hydro is looking at further wind-farm generation sites in western Victoria, while wind power generation plans are also underway in other states.

CitiPower is one of 15 Australian energy companies that in July announced an agreement to implement a new way to trade the rights for electricity that is generated from renewable sources. The Green electricity market (GEM) is an internet based exchange that allows members to trade green power generation.