A $40 million upgrade to AGL's Mount Beauty Clover Power Station facility is on track to be completed as early as the start of next year.

First announced by AGL in July 2022, the upgrade to the Mount Beauty site aimed to install the latest technologies at the 80-year-old power station, setting it up for another 80 years of operations as part of Victoria's largest hydro-electric scheme.

Over the past three years, more than 300 predominantly local workers have been deployed to the site to upgrade the ageing infrastructure of the power station.

Work has included the replacement of turbines and generators, high voltage equipment, control systems for both units and new main inlet values.

AGL head of renewables, Simon Kelley, said he was proud of the work to date and the economic contribution to the region.

“At AGL we are committed members of the local community and it has been great to see this project bring contractors to Mount Beauty, spending in local businesses and contributing to the local economy,” he said.

Mr Kelley said the challenging task of the Tail Bay civil works within Clover Dam was completed last month.

He said the upgrade will debottleneck the scheme by increasing the water flow through the power station from 120 megalitres per hour (ML/h) to 140ML/h and in turn increase the overall capacity of the Kiewa Scheme by 14 MW.

The Kiewa Scheme runs between Falls Creek and Mount Beauty and includes Makay Creek, Bogong, Clover and West Kiewa Power stations and will have total capacity of over 400MW upon completion of the project.

“The Kiewa Scheme is something all local people can be proud of: the ability to generate renewable energy from the water which runs from our mountains to the valleys below is a fantastic local feature,” Mr Kelley said.

“I would like to thank our contract partners for the safety focus and expertise they have brought to this project.

"The Clover Power Station was brought online in 1945 so replacing and upgrading the power station has been a technically difficult task.

“We are on track to finish the upgrades at Clover in early 2026 and look forward to celebrating that occasion when it arrives.”