The Tasmanian Government has unveiled plans for a $2 billion wind farm on King Island, a project that would see the State host the biggest of its kind in the Southern Hemisphere.


Premier Lara Giddings announced the plans earlier this week, saying that the project would see a 200-turbine farm constructed on the island and would seel power into the Victorian electricity grid via an underwater cable across Bass Strait.


Ms Giddings said the Government strongly supported the TasWind concept developed by Hydro Tasmania, and looked forward to the project proceeding to the full feasibility stage.


"We are looking at the biggest single infrastructure project in Tasmania's history," Ms Giddings said. "The project would also provide hundreds of millions of dollars a year in extra revenue to the State.


"It is still in the early stages but this is exactly the kind of forward thinking that will deliver the new jobs and opportunities we are striving for.


"This is an extremely exciting proposal that would not only transform King Island but provide enormous benefits to our economy.


Deputy Premier Bryan Green said the project would generate enough energy to power 240,000 homes and provide an estimated $220 million in revenue to the State per year.


Community forums will begin next month and run till February.


Mr Green said a decision on whether to proceed to the full feasibility stage would be made by April next year.