The project, estimated to cost about $2bn, would comprise 200 wind turbines to be installed over a two-year construction phase.

The company will commence initial consultation with the island’s community and in the next three months, intends to derive feedback as part of the pre-feasibility study.

Hydro Tasmania chairman David Crean said that previous work had indicated the project’s feasibility from a technical, economic and environmental perspective.

"It is most important that we seek the views of the King Island community.

"Their support is crucial for the project to go to the full feasibility stage," Crean added.

Crean further noted that if the project proves feasible, Hydro Tasmania will invite private equity through joint venture partners for the wind farm’s construction.

Energy produced from the project is expected to be transmitted into the National Electricity Market through an underwater cable across Bass Strait.

Once built the wind farm would produce nearly 2,400GW hours of renewable energy for the national market, sufficient to meet the needs 240,000 homes.