The New South Wales Department of Planning has approved a $117 million solar energy project at Vales Point power station.
The project will be one of the first large scale solar power facilities in Australia to co-exist with a coal-fired power station.
Work will begin early in 2019 on the 55 megawatt renewable energy facility that will be built on a 80 hectare area of rehabilitated ash dam that forms part of the broader power station site.
The project will support 100 construction jobs over the 18-month construction period.
Delta Electricity Company Secretary Steve Gurney described the solar farm as an exciting development in terms of its scale and the potential for expansion down the track.
The company is also collaborating with Altura Group in the development of an inland pumped storage hydro project located near Lincoln Gap in South Australia.