Energy minister Charles Hendry has given the go-ahead for Scottish Power to construct a new gas-fired power station in Kent.
The 1,000 megawatt power station near Hoo St Werburgh in Kent will be adjacent to the existing Damhead Creek 800 MW gas-fired power station.
Mr Hendry said: “This power plant will play a vital role in providing secure electricity supplies for the South-east, as well as creating jobs in the region.
“It will be one of the most efficient power plants in the world, and will be built carbon capture ready, which means that eventually CO2 produced by the plant could be captured and transported for storage under the North Sea.
“There is also potential, in the future, to use the heat created by the plant to supply the local area.”
The Damhead Creek 2 combined cycle gas turbine plant could generate enough electricity to supply almost 1.5 million homes.