The South Australian government has approved plans for a large solar thermal power plant, which developers say will be the largest solar thermal power plant ever built.
The project was developed by SolarReserveat, USA, with a budget cost of $650 (£380m)
Construction will begin this year.
This will be the latest move for southern Australia to consolidate its reputation as a renewable energy nation and international leader.
"This important milestone is an important step in the development of Aurora Solar thermal power station, which will bring the world to SolarReserve
Kevin Smith, CEO of SolarReserve, said: "Leading clean power generation technology to South Australia . ".
The development follows Tesla's construction of the world's largest lithium-ion battery in South Australia, which has provided power during a power outage.
South Australian Prime Minister Jay Weatherill said after the launch of the battery that the state is "leading the world in Dispatching renewable energy ".
In recent years, renewable energy has received significant investment, and a report issued by the South Australian service commission in 2015 concluded that by 2030, the state will receive 100 of renewable energy.
The report found that about South Australia's electricity comes from wind and solar energy, with roof-top solar panels installed in houses over the first quarter.
Sarah Bell, founder of energy company Tempus energy, said: "South Australia is the place with the highest penetration rate of renewable energy in the world . " She works extensively in Australia.
"They're a little lucky with their resources-there's a climate like this in many places, they do have a lot of solar energy, but the wind is small.
"The mountains found in the southern states, plus its location by the sea, mean it has enough wind and solar power.
South Australian Labor politicians have been strongly supporting renewable energy.
"They are firmly committed to de-CO2, and the federal government is actually a person who denies climate change," MS Bell said . ".
The new development will be located near Port Augusta, home to the last coal power station in South Australia.
It will use solar thermal technology and molten salt towers to capture and store the energy of the sun.
The factory will use a series of panels that function like mirrors to direct the sun's rays to a point in the center, salt-
Heat the salt to a very high temperature.
This thermal energy can be stored in a "salt battery" and then used to generate steam and power generation.
SolarReserve claims that the new plant will be able to power about 35 of all households in South Australia.
"The Extraordinary Story of Port Augusta's transition from coal to renewable energy-winning competitive bidding for fossil fuels-is also a preview of the future of world power generation, Mr. Smith said.
MS Bell agrees that renewable energy in the region is setting an example for the rest of the world.
"It has put South Australia on the map," she said . ".