THE state government has paid $50,000 for a 60-metre wind mast - to measure the strength of wind for possible wind turbines - in an area banned for wind farms by the planning minister.

The government said it wanted the money back, but the Woodend Integrated Sustainable Energy group, which plans to build the wind mast south of Woodend next week, said it had no intention of handing it back.

The original funding agreement was made under the Brumby government. Credit:Jason South

While the original funding agreement was made under the Brumby government, final contract negotiations for the wind mast were approved by the present government on August 19 - 10 days before Planning Minister Matthew Guy announced Australia's most restrictive wind farm regulations, which make the Macedon Ranges a ''no-go zone'' for wind farms.

Woodend residents had planned to power the town with renewable energy with three wind turbines to be built in a pine forest six kilometres south of the town.