The 288-megawatt Palmer Wind Farm will be built between Palmer and Tungkillo, 60km east of Adelaide, and includes the installation of 40 wind turbines which will connect to the state's electricity network.
They are expected to generate enough electricity to power 144,000 homes.
Environment Minister Tanya Plibersek said the renewable project was one of dozens launched in the past two years.
"Not only are we delivering cheaper, cleaner power sooner, but we are on track to reaching our 2030 emissions target," she said.
"Australians have a choice between a renewable energy transition that's already underway and driving down prices or paying for an expensive nuclear fantasy that may never happen."
The project is expected to reduce greenhouse gas emissions by 212,000 tonnes of carbon dioxide equivalent per year.
Up to 220 direct jobs in construction will be created through the project in addition to five ongoing roles after its completion.
The wind farm's site is currently cleared land and used for grazing.
It comes almost a decade after the AFL's then-CEO Gillon McLachlan was among four groups that launched legal action against the $700 million project.
The site was adjacent to McLachlan's family's century-old sheep and cattle station.
Locals appealed to the Environment, Resources and Development Court, arguing the turbines were an eyesore, too noisy and would damage flora and fauna.
However, the state's development court ruled in 2018 the wind farm could still be built despite the "substantial" local opposition.
Palmer's green light comes one month after a $127.5 million investment in TagEnergy's $4 billion Golden Plains Wind Farm in Victoria was announced.
That site is expected to provide nine per cent of the state's energy when completed in mid-2027.
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