"By providing electricity without burning fossil fuels, this wind farm will offset more than 126,000 tonnes of carbon dioxide each year - the equivalent of removing 29,000 cars from the state's roads," Iemma said.

"The construction of this wind farm is a significant investment in the state's green energy industry and the Goulburn region."

The wind farm would be built next to a Collex waste management facility and its visual and noise impacts would be stringently controlled and monitored by the Environment Protection Authority, according to planning minister Frank Sartor.

The Woodlawn WindEnergy joint venture members are ActewAGL, EHN Oceania Pty Ltd, Collex Pty Ltd and ANZ Infrastructure Services.

ActewAGL chief executive John Mackay said the development of the project had involved comprehensive environmental studies and assessments, as well as close consultation with all stakeholders, including government authorities, local council, community groups and neighbouring properties.

Construction of the wind farm is expected to begin next year.