Rudd plans "world's largest" solar project

It says the project will be as close as possible to the existing energy grid.

Visiting Liddell Power station in the Hunter Valley, Prime Minister Kevin Rudd said the Government would spend almost $1.4 billion creating the project.

The funding is part of the Government's commitment to spend $4.5 billion on reducing carbon pollution.

The project will include up to four individual solar plants generating on average the same amount of energy as a coal-fired power station.

Prime Minister Kevin Rudd says the most appropriate sites will be chosen through a tender process to be completed by next year.

"The location will be determined in terms of maximum access to sunlight, maximum proximity to the electricity grid to minimise costs of transmission systems, as well as a number of other technical and design factors as well," he said.

Mr Rudd has also announced that Australia will become a full member of the International Renewable Energy Agency (IREA), which will hold its first meeting in June.

Currently the largest operating plant is in California in the United States.

The Government's Solar Flagships program hopes to create three times as much energy as that project.