The NSW Independent Planning Commission has signed off on a proposal for a $590 million wind farm in the coal-rich Upper Hunter.
Ark Energy has received approval to set up 54 turbines east of Muswellbrook, capable of generating 335 megawatts.
They will be more than 200 metres high.
The company said it was an "exciting achievement" and it looked forward to contributing to the state's renewable energy targets and helping to drive down wholesale electricity prices.
The Bowman's Creek wind farm has been controversial in the community, with most of the 130 public submissions made throughout the application process objecting to the project.
Landholders raised concerns about noise, visual impacts, bushfire risks and land-clearing in the quiet rural area.
The planning commission said it decided to approve the wind farm due to the project aligning with the state's energy framework to lower emissions and its proximity to existing transmission networks and regional road and rail corridors.
But the approval comes with conditions of consent on the company.
The Bowman’s Creek project was originally slated to have 60 turbines but now must not exceed 54 turbines.
Ark Energy is also required to adhere to noise monitoring, minimise the impact on traffic during the construction phase and prepare a detailed plan to rehabilitate the area once the project is decommissioned.
The company said it listened to locals and modified the design to address community concerns.
Landholder Nigel Wood said he was devastated by the outcome and that he might consider leaving the area.
He raised concerns during IPC hearings about the close proximity of the turbines to his house which will have flashing lights during the night.
"Where do you draw the line?
"It doesn't have a social licence to operate, with the vast majority of submissions opposing the proposal.
"The renewable energy business is running roughshod across Australia."
It comes just under a year after the nearby Liddell coal-fired power station was switched off after operating for more than 50 years.
"Coal is retiring, it's worn out, it's reached the end of its useful life so we need to crack on with it [renewables] now," Ark Energy's Head of Development Martin Poole said.
Mr Poole said he understood the concerns raised, but it was "important to look at the big picture".
"We've listened, we've changed the designs a bit... and I think it will be very successful over the next 20 to 30 years," he said.
"The transition that's happening through the mining and energy industries, it's inevitable.
"We need to look elsewhere for energy and at the moment, wind and solar are the lowest cost, most reliable sources of energy for Australia."
The Australian Energy Market Operator has warned New South Wales is set to bear the brunt of reliability risks if coal-fired power exits before sufficient replacement capacity can be built.
Mr Poole agreed that Australia was a little "late to the party" but said that was not a "terrible" thing.
"The price of solar and wind is much lower than it was, say 15 years ago," he said.
"We're getting the benefits of all the research and development and the evolution of turbine designs over the past 15 years, and we're now getting very cost effective wind power."
MP 'can't stand wind farms', businesses welcome them
The approval has been welcomed by Business Hunter, with the project offering 150 construction jobs and 15 ongoing positions.
"That diversification of jobs is something that has been anticipated in this region for a long time," chief executive Bob Hawes said.
"There's a lot of work going on behind the scenes to make sure that we can start having training and skills development to adapt to these new forms of energy.
"Hopefully this does give others encouragement to come forward and start proceeding with projects … and we're expediting these applications wherever we can."
Upper Hunter MP Dave Layzell said he was disappointed and "can't stand wind farms at all".
"Regional NSW has taken the heavy lifting of the renewable energy transition and this project is one example that really is upsetting the local community," he said.
"We need to find a way for the local community to benefit, whether it's energy prices [being] highly discounted, or some way so that people can actually swallow these projects."
Mr Layzell said he was pushing for the closure of the nearby Bayswater coal-fired power station, due by 2033, to be delayed.
"We need it for a lot longer ... to actually allow these new projects to be brought onto the community in a sensible pace and not a sort of breakneck speed where we're forcing it down the neck of our communities."