Energy Minister Angus Taylor has announced the Morrison government will underwrite private investment into two quick-start gas power plants, to be located in Dandenong, Victoria and Gatton, Queensland.

Mr Taylor said government would not take an equity stake, only underwriting debt for the two power plants - a 220 megawatt plant by gas pipeline builder APA Group in Dandenong, Victoria and a 132 megawatt plant from Quinbrook in Gatton, Queensland.

Angus Taylor said the Morrison government would underwrite two new power plants. Credit:AAP

"We are working to deliver an energy system that isn't a roadblock to businesses growing and employing more people and that isn't stinging family hip-pockets," Mr Taylor said.

The government's underwriting initiative follows a recommendation last year from the Australian Consumer and Competition Commission for the Commonwealth to support new entrants into the wholesale electricity market.