The new Wind Energy Support Package, which was launched at the Challicum Hills wind farm at Buangor yesterday, will provide funding to assist the connection of wind farms to the state's electricity network.

Minister for Energy Industries, Theo Theophanous, said the package would increase investment in wind energy facilities in environmentally-acceptable locations across the state.

Mr Theophanous invited proposals from wind energy developers, adding that priority would be given to locations where there was community support for the development.

"We need to take the communities with us," Mr Theophanous said.

"We have very good wind energy resources in this state. The alternative would be to put a dirty big power station on that hill puffing out smoke.

"We can't keep pumping out more and more pollution into our skies."

Ripon MLA Joe Helper said wind farms had been a boon for local communities, such as Ararat, which is near the Challicum Hills site.

"This $5 million package will have the added benefit of strengthening the electricity grid in regional Victoria," Mr Helper said.

Ararat City Council mayor Paul Hooper said because of the restrictions of the electricity grid, the Challicum Hills wind farm was 17 wind turbines short of its original design.

"They couldn't go through with that because the grid couldn't take the input," Cr Hooper said.

Cr Hooper said Ararat City Council would consider holding a meeting with Powercor and Pacific Hydro to see whether any opportunities can result from the Government announcement.

Mr Theophanous said the funding package was available to developers "immediately".

"We have developed policy and planning guidelines to ensure the appropriate development of the renewable resource, and we have released a Victorian Wind Atlas that provides the latest information about wind energy," he said.

The Government also recently passed new legislation, removing barriers to grid connection and providing an assured buyer of power from small wind generators.