The $220 million, 52-turbine wind farm planned for Bald Hills in South Gippsland had been forecast to reduce greenhouse gas emissions by 435,000 tonnes and had already been approved by the Victorian Government.

The Australian Wind Energy Association has welcomed the approval.

Chief executive Dominique La Fontaine told EMN yesterday that Auswind was pleased that the wind farm had finally been approved, but disappointed that it had taken such a long time.

"We need to make sure that our planning processes and regulatory approval processes are streamlined and as efficient and timely as they can be given that it's so important that we get clean energy infrastructure installed in Australia," she said.

Campbell initially overturned the Victorian Government's approval of the project in April because the risk of endangered orange-bellied parrots flying into the proposed wind farm was deemed too high.

The population of the orange-bellied parrot is thought to be less than 200, but the nearest colony of these birds is 50km from the wind farm.

As a result of the decision proponent Wind Power filed applications with the Federal Court in a bid to set aside Campbell's decision to block the development.

Wind Power agreed to drop its charges against the Federal Government following Campbell's decision to reconsider the project and accept a new submission.

According to Campbell, in its new submission Wind Power relocated six turbines that were previously within 2km of the coast to ensure that there was no impact on the migratory path of the orange-bellied parrot.

"A commitment has also been made to closely and constantly monitor the impact on the orange-bellied parrot and other species and to implement procedures to mitigate any potential impact in accordance with the latest and best advice," he said.

Campbell said having thoroughly considered all information presented to him in relation to the proposal, he was satisfied that the strict conditions attached to the approval would address the risk to threatened species that might use the area.

"Bald Hills Wind Farm Pty Ltd will also contribute $30,000 per year to conservation related actions for all threatened bird species along the South Gippsland coast for the life of the wind farm," he said.