Melbourne’s plans will soon be solar powered.
A solar plant, which will be completed by the end of 2018, will power the whole network.
Energy, Environment and Climate Change Minister Lily D'Ambrosio told News.com.au the government would use its purchasing power as a "large energy consumer" to boost investment in renewables.
The solar plant, which will be completed by the end of 2018, is expected to be located in Victoria's north-west.
The project is expected to create around 300 jobs.
Friends of the Earth said the project would help the Andrews government meet its renewable energy target of 40 per cent by 2025.