Scottish and Southern Energy have been given permission to build a new 870MW gas-fired power station in Wales.
Energy minister Charles Hendry gave the go-ahead for the plant which is expected to be constructed in two phases and will take up to five years to complete.
SSE completed the acquisition of the Abernedd Power Company in May 2009 and it expects to provide up to 1,000 jobs, mostly in construction, during the project.
The Abernedd Combined Cycle Gas Turbine Plant will be built at the Baglan Bay Energy Park, on the former site of a chemicals facility.
Mr Hendry said: “This new power station will bring jobs and industry back to this disused site and will provide a boost to the nation’s energy security.
“Gas is the cleanest and most reliable fossil fuel and it will continue to be a central part in the country’s energy mix during the transition to a low carbon economy.”
The Energy Minister has also granted SSE consent to retrofit its coal-plant in Fiddler’s Ferry, Warrington, with a selective catalytic reduction plant to reduce emissions of nitrogen oxides.
This will allow the company to fit SCR technology to the plant which would enable it to comply with new limit values for emissions of nitrogen oxides set under the EU Industrial Emissions Directive.
The Abernedd project will be connected to the existing National Grid electrical transmission system and will be constructed next to the existing Baglan power station operated by GE.
An SSE spokeswoman said a final investment decision would be made on the project later this year.