The Clean Energy Council today welcomed the decision by Hydro Tasmania to proceed with a feasibility study for its proposed TasWind project on King Island, which brings local residents one step closer to a multi-million dollar windfall, and the creation of hundreds of new jobs.

King Island residents were surveyed on whether they wanted the feasibility study to proceed, and a clear majority of almost 59 per cent voted in favour.

Clean Energy Council Policy Director Russell Marsh said that if it goes ahead, the benefits of the TasWind project would flow through to residents, local businesses, host farmers and community groups.

"An independent assessment conducted for Hydro Tasmania estimated that the proposed TasWind project would bring between $7 million and almost $9 million of economic benefit to King Island per year," Mr Marsh said.

"Hydro Tasmania has also said it would establish an annual community fund of around $1 million, which could be spent on community infrastructure or cheaper electricity for all households and businesses.

"If the project were to proceed, up to 500 new construction jobs would be created, and 45 to 60 full-time direct and indirect jobs, at a time when jobs in traditional industries are drying up. Those workers would also spend money in local businesses that might otherwise be struggling in what are challenging times for the Australian tourism industry," he said.

Hydro Tasmania has said that it will continue to consult with the community during the feasibility study process, and that the King Island community will have another chance to have its say before the development application is lodged.

"While the survey results released today show a majority of support for the TasWind project proceeding to the next stage, it is great to see that Hydro Tasmania has listened - and will continue to listen - to the concerns of all King Island residents," Mr Marsh said.