Construction of the $640 million power station began in 2008. It was initially due to be operational in 2010, and was completed in August 2012.
The plant is located on approximately 20 hectares of land with an extensive buffer zone around it. Although approvals have been gained for approximately 1,000 MW (1,300,000 hp), the Mortlake Power Station will be built in two stages adjacent to the existing Moorabool to Heywood 500 kV high voltage transmission line. The plant will be supplied with natural gas via an 83 km dedicated underground natural gas transmission pipeline from the new gas processing plant being built near Port Campbell, as part of the offshore Otway Gas Project.