The Canberra Liberals have lost a bid to shift a proposed solar farm at Uriarra Village to another part of the territory.
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The opposition also failed to convince the Legislative Assembly to forbid the use of call-in powers to approve the project, despite an attempted compromise by Greens Minister Shane Rattenbury.
The Liberals demanded the government abandon the proposal for a 10 megawatt solar farm at Uriarra because of its proximity to residents' homes.
The push came after 1100 Canberrans signed a petition calling on the government to find a new site for the 26,000 solar panels, which will come within 115 metres of at least one resident's home.
But the motion collapsed after nearly two hours of debate, and four amendments, before a packed gallery of Uriarra Village residents.
Liberals MLA Andrew Wall, pictured, called on the assembly to preserve the "livelihood" of Uriarra residents, and criticised Labor MLA Simon Corbell as a "trigger happy and arrogant" Sustainable Development Minister.
But government MLAs shot down the "ridiculous" motion, attacking the opposition for trying to overturn the project before a development application had even been lodged.
Mr Rattenbury moved an amendment that would forbid the use of ministerial call-in powers on the project, but that was voted down by both the government and the opposition. He lashed out at the Liberals, who he said had agreed to the amendment on Wednesday morning but changed their minds on the floor.
The Canberra Liberals said they would not support a ministerial call-in to approve the solar farm, but they would support a call-in to overturn the plans, a move Mr Rattenbury described as "inherently unfair" and lacking integrity.
"I'm bitterly frustrated that whilst we agreed on some things that would have been a good outcome for the community, the sheer political manoeuvring by the Liberal Party has prevented that from being done today," he said. "I think they wanted it all their way or not at all."
Mr Wall said the opposition could not support a "diluted" motion and "the ball is in the [Sustainable Development] Minister's court on this one now".
"The development application process will run its natural course, unless the minister does still choose to step in and intervene with his call-in powers," he said.
"I hope the community consultation and public notification process is carried out properly.
"In simple terms, this is the wrong site for this proposal.''