Massive solar power station on the cards for Canberra

Chief Minister Jon Stanhope says a study commissioned by the government and power company ActewAGL had determined that a solar plant appeared feasible.

"Climate change is perhaps the most urgent challenge confronting us globally, and investment in renewal energy cannot be delayed," Stanhope said in a statement.

The solar plant would cost an estimated $141 million to build and close to $2 million a year to operate.

A re-elected Labor government would seek proposals from suitably qualified companies for the construction of a facility with a capacity of at least 80 GWh - capable of powering 10,000 homes.

"The consultants have recommended proceeding to a full feasibility study. The government has elected to go one extra step and construct a business case, with the intention of testing the market," Stanhope said.

The Parsons Brinckerhoff report states "a site of 120 ha will be required and if engineering, planning and environmental work commenced immediately, it is envisaged that a plant could be commissioned by 2012".

The ACT election will be held on October 18.