EDF Energy has secured approval from the UK Department of Energy and Climate Change (DECC) for the construction of 1800MW gas-fired power plant in Sutton Bridge, Lincolnshire in the east of England.
The power plant, which is expected to create around 1,500 construction jobs, will have 35 years of operational life.
UK Energy Minister Lord Bourne said: "We are working to deliver clean, affordable and secure energy supplies for hardworking families and businesses.
"Continued investment in this vital industry – such as this new power plant – creates jobs but also helps keep the lights on as we move towards a cleaner energy future."
EDF will now make a final investment decision for the combined cycle gas turbine project, which is planned to be completed between 28-36 months.
In March, EDF Energy secured a £1bn annual electricity supply contract from the UK Government.
The Crown Commercial Service, a Government agency which provides commercial and procurement services for Government departments and the UK public sector, has renewed its agreement with EDF Energy.
EDF also secured planning approval from the UK Government earlier this year to develop 3.2GW nuclear power plant at Hinkley Point C in Somerset, UK.
The GBP14bn nuclear power plant will include two EPR reactors, each of 1.6GW capacity, capable of generating 7% of UK’s total electricity.
EDF Energy owns and operates nuclear power stations, wind farms, coal and gas power stations and combined heat and power plants which accounts to around one-fifth of the nation’s total power generation.