Smoke could be seen billowing from a Richmond power plant after a massive explosion rocked the suburb on Tuesday afternoon.

Shocked residents and shoppers heard a large bang as fire engulfed a transformer at an electrical terminal station on Mary Street.

Smoke can been seen billowing after a large explosion in Richmond on Tuesday afternoon. Credit:Channel Nine

A Metropolitan Fire Brigade spokesman said firefighters arrived at the blaze, near the Monash Freeway, about 4.10pm.

"There is a lot of smoke, some fire and a big bang," he said.