This was according to local councillor and the University of South Australia's Regional Sustainability Centre chairman Eddie Hughes.

Mr Hughes said the announcement was "great news" for the region.

"Not only will it deliver new jobs and business opportunities, it puts Whyalla at the centre of an exciting advance for sustainable energy in Australia," he said.

"This is fantastic news for Whyalla with the federal money and $170 million from the private sector consortium enabling the building of a 300 dish project at Whyalla's old dairy site.

"The concentrating solar thermal project will use the world's largest parabolic solar dishes which are 500 square metres in surface area and capable of generating temperatures in excess of 2000 degrees."

Mr Hughes said the $230 million project would employ 200 people during construction which will be a positive for Whyalla and the region.

"Whyalla has plugged away for nearly 14 years to secure a large scale solar thermal project with the latest announcement coming on top of the $15 million solar storage demonstration plant which is currently under construction," he said.

"This has been about vision and dogged persistence despite the many set backs along the way.

"The Solar Oasis project will concentrate the suns energy to produce steam and drive an off the shelf turbine to produce electricity."

Mr Hughes said Whyalla had about 10,000 houses and the energy produced, which will be exported to the grid, was enough to serve the needs of just under 10,000 houses for Whyalla the "solar city".

"This project ticks all the boxes, clean green technology, Australian innovation and economic benefits with the potential for significant export opportunities and it puts Whyalla on the cutting edge of the solar revolution."