Spanish firm Union Fenosa intends to invest $1.9 billion in a portfolio of seven Australian wind farms to be built in two stages.

The Government says the investment will create 225 jobs in the initial construction phase plus 40 operational positions.

Trade Minister Simon Crean said the venture would boost Australia's clean energy capabilities and help to reduce the nation’s greenhouse gas emissions.

"As well as directly creating badly needed jobs in regional areas, Union Fenosa Wind Australia's facilities will boost growth in the local industry, creating new business and jobs to supply parts, maintenance and other services during their whole life cycle," Mr Crean said.

"These facilities will make a significant contribution to the Rudd Government’s renewable energy target that commits to at least 20pc of Australia’s electricity supply being generated from renewable sources by 2020."

Facilitation of the Union Fenosa investment was supported by Austrade, the Australian Government's trade and investment development agency.

The electricity produced by the first three wind farms in Phase 1 would supply the annual consumption of 186,000 households.

On completion in 2013, the seven wind farms will represent an additional 850 megawatts generation capacity to Australia's existing wind generation capacity of 824MW.

Phase one of the project will see the construction of wind farms at Hawkesdale and Ryan Corner in Victoria, and Crookwell, NSW.

The first phase is due for completion in 2010 and permits have been granted.

Phase Two will see the construction of wind farms at Tarrone, Berrybank and Darlington in Victoria, as well as Paling Yards in NSW.

The second phase is due for completion in 2013.