The AUD8bn ($5.9bn) project would be built 10-25 km off Victoria’s eastern coast and would occupy 570 square km.
If approved, the 250-turbine windfarm could provide 18 per cent of Victoria’s power and supply 1.2 million households, proposed developer Offshore Energy said.
The company added that the project would create 12,000 construction jobs and could potentially offer employment for former workers at the Hazelwood coal-fired power plant, which was shut down in March.
A feasibility study for the windfarm is expected to take three years.
Energy Minister Lily D’Ambrosio called the project “exciting” and “unprecedented” as well as “one that our government supports”. She said her department would work with Offshore Energy to negotiate the planning requirements.