The $642 million Liverpool Range Wind Farm will generate enough to power nearly 500,000 homes.
Situated east of Coolah and northwest of Cassilis, the development will feature 272 turbines and four substations.
It will take three years to build the wind farm that will span 36km from north to south and 20km east to west. Once complete, it will be one of the largest wind farms in Australia.
Minister for Planning and Housing Anthony Roberts said the State Significant Development would pour large amounts of money back into the Upper Hunter community.
“It will also offer community funding contributions of up to $800,000 a year through a voluntary planning agreement with Warrumbungle and Upper Hunter Shire Councils,” Mr Roberts said.