The state's Independent Planning Commission has given the green light to a $569-million wind farm near Muswellbrook.
The Bowmans Creek development is by far the largest wind farm in Hunter Valley to gain approval, consisting of 54 turbines towering up to 220 metres high.
In granting its approval, the IPC reduced the number of proposed turbines from 56 to 54, which are estimated to generate 335 megawatts.
The proposal attracted more than 50 submissions objecting to the project. To address concerns, the IPC will require developer Ark Energy to reduce the visual impact with landscape screening, and undertake noise monitoring and publish the results on its website.
In justifying the decision, the Commission found the proposed site was suitable for renewable energy development given its location within the Hunter-Central Coast [Renewable Energy Zone]".
"[It has] proximity to existing electricity transmission networks, topography, wind resources, access to the regional road network, and avoidance of major environmental constraints," the IPC stated.
Ark Energy head of development Martin Poole said the approval was an exciting achievement for the company and the state.
"We first introduced this project to the local community in 2018 and have been progressing it through the NSW planning process over the past five years," Mr Poole said.
"We listened to the community to iterate the design and address concerns, and we're thrilled that Bowmans Creek Wind Farm has been approved.
"We look forward to this important project contributing to the state's renewable energy targets and helping to drive down wholesale electricity prices."
The approval comes as hundreds rally on the laws of Parliament House in Canberra, protesting reckless renewables.