The extension facility will be located next to the existing 90MW Burbo Bank wind farm, which is situated on the Burbo Flats in Liverpool.
The extension covers 40km² area and will sit to the west of the operational facility in Liverpool Bay, about 7km north of the North Wirral coast.
Onshore construction is due to start in November 2014 while offshore work is expected to commence in 2016.
The wind farm is expected to be commissioned by the first quarter of 2017.
The extension project will feature about 69 turbines with an estimated generating capacity of around 250MW, enough to power 170,000 homes in the UK.
UK Planning Inspectorate chief executive Simon Ridley said: "This is a significant application for the offshore wind energy sector. The Examining Authority took full account of views from communities, particularly in the north west of England, who might be affected by this proposal alongside national policy and evidence of the need for the project."
Commenting on the decision, The Crown Estate offshore wind head Huub den Rooijen said: "As manager of the UK seabed we are delighted to see such positive decisions coming through the planning process, which further support the UK’s position as a global leader in offshore wind.
"The Burbo Bank offshore wind farm benefits from shallow waters and good wind yield and today’s consent announcement for an extension represents a solid opportunity to capitalise on the existing wind farm’s success."
Image: The Burbo Bank offshore wind farm extension covers 40km² area and will sit to the west of the operational facility in Liverpool Bay. Photo: Courtesy of the UK Government.
