The Mugga Lane landfill power stations currently produce about 27.2MWh of renewable energy from the methane portion of landfill gas.

That is enough electricity to supply about 4,000 homes per year.

The additional drilling is being undertaken by Energy Developments, the company with the contract to extract the gas and produce the power.

It is estimated to cost about $500,000 and take about four weeks to complete.

Wal Hammonds from Energy Developments said the company was keen to further develop the landfill for gas extraction purposes to secure its supply in the future.

The ACT Government introduced the NoWaste by 2010 strategy in 1996, aiming for all waste to be transformed into a resource or stored until technology is available to transform it into a resource.