Energy company Snowy Hydro and renewable energy investor Equis will develop a 100 megawatt solar facility at Tailem Bend, east of Adelaide.
The solar farm is expected to begin operating in 2018 and will include large-scale battery storage.
"This is an exciting opportunity for Snowy Hydro to source renewable generation in South Australia to complement our existing capacity," Snowy Hydro chief executive Paul Broad said.