The Dundonnell wind project in south-west Victoria is being developed by New Zealand firm Trustpower, which said 200 people could be employed during the construction phase.
Up to 96 turbines have been approved for the site, with first power expected by 2018.
Trustpower said the project was "instigated by a group of farmers who wanted to source a wind farm for their properties. Dundonnell is a sparsely populated rural area predominantly used for grazing, with rocky ground and limited alternative farming opportunities. It does, however, have a strong wind supply."
The developer will now work towards a final investment decision. With the approval of Dundonnell, Trustpower has 500MW of approved capacity in Australia, plus around 1.4GW of wind capacity in operation or in the pipeline.
In August 2015, Victoria's government launched a renewable energy roadmap it hopes could create A$200 million (US$143 million) of new investment.
IN June 2016 Victoria announced it is targeting 25% of renewable energy by 2020, rising to 40% by 2025.
Earlier this month, Acciona and WindLab won the rights from the state government to build two new projects in Victoria, totaling around 100MW.
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