The developers of the proposed 1.6 gigawatt offshore wind farm have referred their project for assessment under the Federal Government's Environment Protection and Biodiversity Conservation legislation.
Energy Estate has proposed to build a 110-turbine wind farm 20 to 50 kilometres off the coast between Newcastle and The Entrance.
When operating at maximum capacity the Hunter Coast Offshore Wind Project would generate about 80 per cent of Eraring Power station's output.
The project, one of about 10 proposed for the region, is the first to be submitted under the Commonwealth environment legislation.
"This is just the first formal step in the approval process for the Hunter Central-Coast Offshore Energy project," Energy Estate director of partnerships Rosie King said.
"Last year we released our visual simulations for the project and held our first community drop-in sessions. We are passionate about working closely with local stakeholders during the development process and we want the communities' input into the design of our projects. There will be many opportunities for the affected communities and stakeholders to actively participate in the approval process over the coming years."
Part of the project's footprint is located south of the Hunter Offshore Wind Project zone that the Federal Government is presently conducting community consultation for.
Energy Estate co-founder Simon Currie is among those calling for the zone to be extended south to Terrigal and be located further off the coast.
The proposal, supported by the Maritime Union of Australia, the Construction Forestry Mining and Energy Union and the Electrical Trades Union, would extend the existing zone by about 30 per cent.
They argue that increasing the area located in shallow water (up to 300 metres) would not only enable the project to be built quicker but it would also reduce construction costs, which would ultimately be passed on to consumers.
"We want to maximise the amount of offshore wind that can go out there," MUA Newcastle Branch Secretary Glen Williams said.
"We want to get this right from the start, it's not something that we want to come back to because we have run out of space or because they realise there is potential for further growth in the industry down the track."
The Department of Climate Change, Energy, the Environment and Water consultation will continue community consultation for the current proposal - a 2810 square kilometre area extending from Norah Head to Port Stephens - until April 28.
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