New Zealand-based TrustPower has signed a 15-year power purchase agreement (PPA) with Origin Energy to supply the renewable energy generated by its 270MW Snowtown II wind farm in South Australia.

The 270MW Snowtown II wind farm will comprise 90 turbines and will be located adjacent to TrustPower’s 100MW Snowtown Wind Farm.

Origin Energy Markets chief executive officer Frank Calabria said the new PPA will directly underpin the development of the Snowtown II wind farm.

"The agreement demonstates our commitment to supporting a range of renewable energy sources and options to meet both our obligations under the Federal Government’s Large Scale Renewable Energy Target and customer demand for cleaner energy," Calabria said.

Under the terms of the agreement, Origin will receive 100% of the output and rewewable energy certificates (RECs) from the wind farm.

Origin will pay only for the energy and RECS generated by the wind farm.

Construction is expected to commence in late 2012 and the facility is slated to begin operations in 2014.