Almost 50,000 additional Canberra homes will be powered by renewable energy after a new wind farm contract was awarded by the ACT Government.

The Sapphire Wind Farm will be built near Glenn Innes in northern New South Wales and will generate electricity using up to 32 large-wind turbines.

It is the fifth project awarded under the ACT Government's two wind auctions and is set to be built by a consortium of Japanese, French and United States companies.

The Government said by the time the project was built in 2018, 80 per cent of the ACT's power would come from renewable sources.

That is in line with the Government's target of 90 per cent renewables by 2020.

The Government's initial wind farm auction held last year netted three winners; the Ararat wind farm in south-west Victoria, the Coonooer Bridge wind farm north-west of Bendigo and Hornsdale wind farm near Port Augusta in South Australia.

ACT Environment Minister Simon Corbell said the new project would benefit all Canberrans through the creation of jobs and a boost to the local economy.

"Sapphire has been awarded a feed-in-tariff of $89.10 per megawatt hour for 100 megawatt capacity," he said.

"This project will power 48,600 Canberra homes, providing a clean, sustainable energy alternative to gas and coal-fired power generation.

"[But] today's announcement is about more than renewable energy generation, it is about powering new high-growth industries to diversify our economy and create the jobs of the future.

"As part of the successful bid, the ACT Government has secured tremendous local investment benefits, totalling $100 million over 20 years, which will benefit all Canberrans."