The $2.75 billion acquisition of Tilt Renewables will see its Australian arm being taken over by Powering Australian Renewables (PowAR) and its New Zealand business go to Mercury NZ Limited.

Tilt Renewables chair Bruce Harker said the board was pleased that with the new owners the transition to renewables in Australia would continue to accelerate.

The Dunndonnell wind farm was hampered from powering up to full capacity of its 80-turbine, 336MW farm last year after hitting a snag when it was due to come online.

The electricity regulator had put the handbrake on over concerns about potential faults on the incident-plagued 500kV powerline.

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AGL - which operates the 140-turbine Macarthur wind farm - has a 20 per cent interest in PowAR and will contribute $A341 million to fund its portion of PowAR's acquisition of Tilt's Australian business.

The deal will make AGL the largest owner of wind and solar energy generation in Australia.

AGL CEO Brett Redman said the deal continued AGL's legacy as one of the largest private investors in renewable energy in Australia and further progressed AGL's own energy transition.

"The proposed acquisition by PowAR will provide more renewable energy options in AGL's generation portfolio, further supporting our orderly transition away from coal-fired power and responding to our customers' increasing appetite for cleaner energy," Mr Redman said.

"This is an exciting opportunity for PowAR to further extend its leadership in renewable energy generation.

"For AGL, participating in this acquisition aligns with AGL's climate commitments, and complements our recent acquisitions of Epho and Solgen that have positioned us as Australia's largest commercial solar provider.

"Tilt's exceptional renewable asset portfolio is matched by a significant development pipeline, with more than 3500 MW capacity across various technologies, including wind, solar, battery storage and peaking capacity in Australia.

"Together with PowAR's existing portfolio, these will support AGL's transition to accelerate in line with customer demands and community expectations for cleaner, reliable and affordable energy."

Mr Redman said AGL created PowAR in 2016, in partnership with QIC and the Future Fund, because of its potential to drive investment in large-scale renewable energy generation in Australia.

"Once completed, this acquisition will make that vision a reality," he said.

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