A new wind farm is to be built off the coast of Lincolnshire capable of powering 200,000 homes.
British Gas’s parent company Centrica announced the £725M project which will see 75 turbines constructed five miles from Skegness.
The move will raise the company’s installed renewable capacity to 650 MW and work is set to begin on the 270 MW site in 2010.
It will be constructed next to the company’s existing sites at Lynn and Inner Dowsing. These currently power 130,000 homes.
It is hoped the turbines will begin electricity production by the end of 2012.
Centrica said the Government’s decision to increase the financial incentives for offshore wind had been “fundamental” in enabling the project to go ahead.
Chief executive of Centrica Sam Laidlaw said: “Our decision to build Lincs illustrates our continued commitment to develop renewable generation and confirms our position as one of the UK leaders in green energy.
“The Government’s enhanced financial framework for offshore wind has been fundamental in improving the overall project economics of this development.”
The company also announced it was selling a 50% stake in its Lynn, Inner Dowsing and Glens of Foudland wind farms to US-based investment management company TCW for £84 million and had agreed a refinancing deal to raise a further £340 million in funds for new projects.
Following Centrica’s announcement, Energy and Climate Change Secretary Ed Miliband said: “This is another vote of confidence in our decision to review the incentive for offshore wind earlier this year and a clear example of how government intervention can drive the energy generation market towards low carbon.”