Tamar Hydro has been selected to design and build the mini hydro-electric power station at Lal Lal Reservoir, south-east of Ballarat.
The awarding of the contract to Tamar Hydro follows a detailed tender process run by Central Highlands Water after the Andrews Labor Government pledged $500,000 towards the $846,000 project last year.
As joint managers of the reservoir, Central Highlands Water and Barwon Water will pay the balance of the cost of the project, which is expected to save more than 500 tonnes of greenhouse gas emissions a year.
The generator will produce up to 526MW of electricity – enough to power about 80 homes – which will be used to run the Lal Lal Water Treatment Plant, with any excess electricity fed back into the grid.
Tamar Hydro is the largest manufacturer of hydro turbines in the Australasia/Pacific region and has designed and built more than 200 turbines, with extensive experience in the sector over the past 30 years.
Construction of the hydro plant at Lal Lal Reservoir is due to begin in May and will be completed in late 2016.