The approval has been granted to build, own and operate $107m project near Saratoga, Iowa. Once operational, the wind farm can generate clean electricity that can be supplied to around 47,000 homes.
MGE will install 33 wind turbines at the Saratoga wind farm, which will be located around 200 miles west of Madison.
According to MGE, the site has been selected for its strong winds and close to existing transmission infrastructure.
Construction on the project is expected to begin in the spring of 2018, and slated to be commissioned by the end of 2018.
MGE intends to supply 30% of electric sales from renewable resources by 2030 and up to 25% by 2025, as part of its Energy 2030 framework.
In addition, the firm will work with customers to decrease carbon emissions 40% from 2005 levels by 2030.
MGE president and CEO Jeff Keebler said: "MGE is committed to increasing renewable energy and driving carbon out of our energy supply mix.
"We're working to achieve a more sustainable energy supply mix using the best, most cost-effective technologies as they become available."
"The economics of both the location and turbine technology will provide affordable, clean energy to MGE customers for years to come."
MGE generates and supplies electricity to 149,000 customers in Dane County of Wisconsin. It also purchases and distributes natural gas to 154,000 customers in seven south-central and western Wisconsin counties.
