Plans for a gas power plant in Midsomer Norton have been put on hold after 1,700 people signed a petition.
Bath and North East Somerset Council used delegated powers to allow the scheme in May, meaning councillors did not vote on the decision.
The plans were approved despite dozens of local objections and sparked outcry from opposition members.
Conrad Energy said its project would "provide flexible power to balance the local electricity network".
Cabinet members promised a review of the way the decision had been made, saying it "flew in the face" of the council declaring a climate emergency.
More than 1,700 people have signed a petition urging Conrad Energy to rethink its plans and switch to a more sustainable, low carbon alternative.
The applicant has now agreed to put the application on hold until the spring.
Reducing carbon footprint
Chris Shears from Conrad Energy said: "We have taken on board the feedback from councillors and from local residents and will work in partnership with the community to develop a solution in Midsomer Norton that works for everybody."
The Liberal Democrat administration said the ward's Conservative and independent councillors could have called the application in to the planning committee but "chose not to do so".
However, the Conservatives dismissed the claim as "nonsense", according to the Local Democracy Reporting Service (LDRS).
Councillor Sarah Warren, cabinet member for climate emergency, said: "I am delighted that Conrad is considering greener business models that will support us in reducing our carbon footprint, as part of our plan to achieve net zero emissions by 2030."