Sydney is set to begin building its first solar energy plant in the eastern suburbs.

Sunrise Development Group will build the $1.4 billion project at the site of the former Sydney Central Shopping Centre on the site formerly occupied by the former SPC shopping centre.

Sunshine plans to employ 150 people at the project, which will be owned by the Sunshine Development Company.

The project is scheduled to begin operation in 2021.

Sydney is the second major city in Australia to build a solar power project.

The first is the $2.5 billion SunPower Power Station, which was opened in December 2019.

Sunset has also partnered with the Victorian Government to build its own solar farm in the western suburbs.

The company said the project will cost around $250 million to build.