Plans to build a wind farm between Canberra and Goulburn have been withdrawn.

Renewable energy company EPYC says its proposed 54-turbine Jupiter Wind Farm five kilometres south-east of Tarago will not go ahead.

The project had been widely opposed by local residents and the Queanbeyan-Palerang and Goulburn Mulwaree councils, whose concerns focused mainly on the potential effect on house prices and a lack of consultation.

The NSW Department of Planning and Environment (DPE) received over 400 objections to the project.

EPYC has now advised the NSW Independent Planning Commission (IPC) is has withdrawn its application.

The company's business development manager Shahroo Mohajerani said the decision was not “taken lightly”.

“In reviewing the assessment report from DPE we believe that the assessment report did not take into full consideration the extent of all the improvements made to the proposed project,” he said.

“As such EPYC PTY LTD believes that the IPC's finding would not be contrary to recommendation made by DPE.”

Mr Mohajerani said the local area had lost an opportunity.

“Sadly the prospect for new wind farm development in NSW appears to be extremely limited as the opportunity for proponents to enter the market is hindered by the ongoing changes in requirements,” he said.

The IPE says planned site visits and public meetings have been cancelled.

“The commission rejects the assertion its assessment and determination of the application would not have been made fairly and independently of the department,” it said.

Residents Against Jupiter Wind Turbines spokesperson Michael Crawford welcomed the result.

“We were surprised because the community has been telling [EPYC] for four years or more that this is an inappropriate area and they had refused to listen to that,” he told the ABC.

“The community is happy about the outcome but at the same time many members of the community are angry about the fact for more than four years the community has been under stress.

“People's lives in many cases have been put on hold with uncertainty of what the implications would be.

“For a lot of people it's a real win to have this occur and they can now start to get on with their lives without the uncertainty this is going to go on for years and years.”