A joint venture between French company Neoen and the Australian Capital Territory Government will inject $250 million into the South Australian economy and deliver clean energy to the capital.

Neoen bought the Hornsdale wind project outside Jamestown, in South Australia's mid-north, from corporate bank Investec 18 months ago.

Wind power is the fastest growing renewable energy source for electricity generation in Australia and the project caught the eye of Neone who have just commissioned the largest solar energy plant in Europe.

The company also has solar and wind interests in New South Wales, Western Australia, Queensland and South Australia.

The market for wind energy is highly competitive, increased by a reduced cap on renewable energy targets, which will guarantee low electricity prices for households in the ACT.

The ACT Government is on target to deliver 90 per cent of the capital's electricity from renewables by 2020.

Power from the Hornsdale project is bought exclusively by energy retailers in the ACT under a feed in tariff or 20-year contract with Neoen, to supply 100 megawatts of power to households.

ACT Deputy Chief Minister, Simon Corbell, said the ACT Government is one of the biggest investors in renewable energy in Australia.

"We are supporting the development of wind farms in the broader national electricity market that are able to supply electricity to the ACT and we're using Australia's first and only large scale feed in tariff law to support the development of these wind farms by paying the wind farm developers a guaranteed price over a 20 year period."

European Banks back Neoen

With a customer locked in for the next 20 years, European Banks have given Neoen the green light to begin construction immediately.

Thirty two wind turbines will be erected on the hills outside of Jamestown, across 15 different properties and the company will put in a bid in the second round of a reverse auction, held by the ACT Government, to secure funding to expand the Hornsdale project.

Managing Director of Neoen Australia, Franck Woitiez, said the development of a wind project in South Australia was not possible without support from the ACT Government.

The reliability of the ACT renewable target and long term contracts was enough to bring funding across from European banks.

"European Banks have been supporting us and they are investing in the project on a long term basis," Mr Woitiez said.

Neoen has its sights set on renewables in Australia.

Another $500 million will be spent on turbines to generate an additional 170 megawatts of power for the national grid.

Above that Neoen has set a target to feed 700 megawatts of power by 2020, but will have to convince states to follow the lead of the ACT Government, to make room for more renewable energy in the grid.

"It's very significant for us and very significant for South Australia, Mr Woitiez said.

"We have been very happy to do business in South Australia, the government is supportive of the project.

"We are developing more projects all over the country, NSW in Queensland and in WA," he said.

Wind costing jobs in mining

Neoen's expansion across the hills around Jamestown has been labelled by some as anti-jobs.

Family First Senator for South Australia, Bob Day, told ABC Local Radio that major job losses at Alinta Energy power stations in Port Augusta were the result of extra power generated by renewable energy.

"The reason Alinta is closing is because we are building all these windfarms, that is the reason they are closing, he said.

"If it was up to me, and my advice is that we should not be continually building all these windfarms."

Renewable energy makes up 14 per cent of household electricity with 4 per cent of that coming from wind energy according to Origin Energy.

Frank Woitiez said wind energy is starting to compete with conventional fossil fuels on price and demand in the electricity market.

Political uncertainty over the Renewable Energy Target and the mining downturn has created a tough environment for renewable companies like Neoen.

"The renewable energy target and the policies have been threatened during the last 18 months so that was not positive," Mr Woitiez said.

"But I think the ACT Government, through its farsighted policy, have helped the industry to survive.

"Neoen are happy to invest in Australia, we are happy to grow in Australia."