The project is being developed by Forewind, a consortium comprising energy firms SSE, RWE, Statkraft and Statoil.
It features two separate 1.2GW offshore wind farms, which will have up to 200 turbines installed across an area of about 500km2.
Planned to be located 131km from the UK coast, the wind farms will connect into the existing Creyke Beck substation near Cottingham.
Upon completion, the entire project will generate 8 terrawatt hours (TWh) of energy per year.
The project, which will be the first stage of development in the Dogger Bank Zone, is expected to generate over £1.5bn for the UK economy and create 900 new jobs in Yorkshire and Humberside.
UK Energy and Climate Change Secretary Ed Davey said: "This is another great boost for Yorkshire and Humberside. This development has the potential to support hundreds of green jobs and power up to 2 million homes."
Forewind general manager Tarald Gjerde said: "Achieving consent for what is currently the world’s largest offshore wind project in development is a major achievement for Forewind and will help confirm the UK’s position as the world leader in the industry."
Commenting on the approval, RenewableUK offshore renewables director Nick Medic said: "This is an awesome project. It will surely be considered as one of the most significant infrastructure projects ever undertaken by the wind industry.
"Dogger Bank demonstrates the sheer potential of offshore technology to turn our vast ocean and wind resources into green energy."
Image: Dogger Bank Creyke Beck, which has a total generating capacity of 2.4GW, comprises two separate 1.2GW offshore wind farms. Photo: Courtesy of Forewind.
