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Planning Minister Kristina Keneally says the 73-wind-turbine farm will have the capacity to power 63,000 homes.
The number of turbines has been cut from the original proposal for 84 to minimise impact on the nearby Crookwell Aerodrome.
The area is also a nesting ground for the powerful owl.
Ms Keneally says the the use of some turbines will have to be restricted when the young owls are learning to fly.
"There will be penalties apply for any death that occurs, either for the owl or for the wedgetail eagle as a result of the wind farm's operation," she said.
Ms Keneally says other environmental and community concerns have also been taken into account.
"The proponent here will make a number of contributions to the local community in the form of financial contributions and also in the form of conditions of consent that seek to address community concerns - things like limiting the visual impact, limiting noise and shadow flicker impact," she said.
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