On May 2, the DPE recommended against Crookwell 3 Wind Farm and referred it to the Independent Planning Commission (IPC) who will have the final say.

The DPE considered the impacts on the community significantly outweighed the potential benefits to the broader community of NSW.

The reasons for refusal are:

If the IPC approve the project matters raised by the Upper Lachlan Shire Council, the Office of Environment and Heritage and Water NSW would also need to be addressed.

Twenty-three turbines up to 157 metres high would be developed on elevated ridges on both sides of Crookwell 2 on the main ridge line on the approach to Crookwell. It would generate 96 megawatts, create 40 jobs during construction, and up to six during operation.

Matthew Donoghoe, 'Hillview Park' one of three sites of the proposed project, is "disappointed".

"It's a great disappointment and I see it as a potentially lost opportunity," Mr Donoghoe said.

"As a small business, we always reinvest so heavily back into the community, whether its employing staff or selling more. It all goes back into the local economy."

The project is owned by the developer of Crookwell 2 Wind Farm - Crookwell Development (CDPL), which is owned by Global Power Generation - and would access the grid through the use of its substation.

Charlie Prell, who hosts Crookwell 2, said, "It's not a new wind farm, it's stage two of an existing... it has always been promoted as that.

"If they [the DPE] are serious about finding that district as a wind farming precinct, then surely it would indicate the region is acceptable to put turbines in."

Since the original application in 2010, CDPL reduced the impacts of the project, including the removal of seven turbines. The company has also reached agreements with nine neighbouring landowners who were willing to accept the impacts of project. "I've been able to sit down with a few of my neighbours and explain the long term benefits and once they understand the benefits are willing to sign neighbour agreements," Mr Donoghoe said.

"The irony is that the farms that surround the Crookwell 3 wind farm are a mixture of bonafide small business farmers who genuinely value those sums of money, but the people keenest to object are Pitt Street farmers who don't regard that money any more than play lunch money.

"The fact that these people are objecting this indicates their stance on climate change."

The DPE considers the project as not critical to NSW meeting its renewable energy target. A spokesperson for the Minister for Energy Matt Kean said it was not a reflection on the state government's energy policies.

Global Power Generation did not respond by time of publication.