Fife Council turned down an application for the facility in Hillend.
Climate campaigners have welcomed a decision to reject a new gas plant.
Fife Council turned down the application for the facility in Hillend following a campaign from local activists the Hillend Action Group.
Ahead of the vote, the community group staged a protest outside the council building alongside Extinction Rebellion Fife and Friends of the Earth Scotland.
Protesters also attended the council meeting wearing face masks and holding signs reading “Fife Council Don’t Be Fossil Fools”.
Representatives from the Dalgety Bay and Hillhead Community Council also spoke against the proposed plant, stating the health risk from increased air pollution and the contribution to the climate crisis.
Ian Wragg from the Hillend Action Group said: “I am delighted that common sense has prevailed and the air quality concerns of local residents, SEPA and the NHS have been listened to.
“We cannot keep building fossil fuel gas plants as they accelerate climate change and prolong our reliance on fossil fuels.”
Kate Whitaker from Friends of the Earth Scotland added: “We are ecstatic about the decision to reject a new gas power plant in Hillend. The impacts of the climate crisis are being felt across the world right now, from fires in Australia to flooding in Indonesia.
"Many local authorities have declared a climate emergency and this means they should be prioritising bringing about a just transition away from fossil fuels. The decision today is a great step towards taking action to match these words and the protests outside and inside the council shows that communities aren’t afraid to show up and hold their representatives to account.
"The dedication and success of the Hillend Action Group should show communities across the country that they have the power to resist these unwelcome developments in their local areas and fight for a fairer future”.