It comes as Planning Panels Victoria released its report on the Mount Fyans wind farm which would see a 400-megawatt, 81 turbine wind energy facility about five kilometres north of Mortlake.

The panel found the level of uncertainty in terms of possible material impacts on the environment, particularly on the endangered Brolga and critically endangered Southern Bent Wing Bat, may outweigh the positive outcomes of the project.

That would tip the balance to one which would not have a net community benefit or achieve a sustainable development outcome.

It said those issues could not be satisfactorily mitigated through permit conditions at this stage, but if additional work were to be undertaken, many of its concerns relating to biodiversity impact could be addressed and responded to - potentially through a modified proposal.

For objector Susan Dennis who lives south of Darlington, the report provided some relief.

"I would say it's a win for for environmentalists," she said.

"I think the report was great and the panel listened, it is a very comprehensive report.

"Fifteen years ago the Mortlake East wind farm was proposed, which was on my boundary here south of Darlington and that was not given a permit due to unacceptable impact on the Brolga.

"Fifteen years we've been fighting this battle to say that Brolgas fly further and behave in a way finally acknowledged in this report."

In terms of the Brolga, the panel said further work was needed in terms of the confirmation of breeding sites and buffers, flight behaviours to inform collision risk modelling and a completed population viability analysis and Brolga Compensation Plan.

The planning panel also said it did not have sufficient confidence that, based on the information provided, the potential impacts on listed bird and bat species including habitat and movement corridors were able to be acceptably managed.

Further information would also be needed into the investigation and assessment of potential impacts on additional species including on habitat and movement corridors and completion of a Bat and Avifauna Management Plan.

Survey efforts for Hairy Burrowing Crayfish prior to works on Blind Creek should also be extended to include Little Galaxias to ensure impacts on that species are avoided.

Fellow objector Nina Thomas, from the Mortlake area, said it was "a step in the right direction".

"Biodiversity is extremely fragile and there's extremely strong evidence we need to protect it," she said.

"I'm really relieved to hear the panel has heard the concerns of the community about the environmental impacts ... this is a really good step in the right direction which shows they're listening and seeing there's a bigger story here than just building wind farms to address environmental concerns."

Meanwhile on other matters, the panel found that on balance the landscape impacts were considered acceptable.

It said the project was also capable of complying with the construction and operational noise limits but considered the applicant should attempt to meet the high amenity equivalent limits where practicable.

The panel considered issues relating to bushfire, hydrology, cultural heritage, traffic, agriculture, aviation, blade flicker and glint, electromagnetic interference, construction and decommissioning could be managed to acceptable levels through permit conditions.

Woolnorth Renewables head of development Giles Rinckes said it was reviewing the report and would make a response to the department of planning soon.