The 1,000MW London Array would consist of up to 341 wind turbines and be able to generate enough electricity to cater for the power needs of a quarter of London homes or every home in Kent and East Sussex. It would also avoid the emission of millions of tonnes of carbon dioxide over its life.

The project would be built in phases and when complete would generate electricity equivalent to almost 10% of the Government's target for 10% of the UK's electricity to come from renewable sources by 2010.

London Array received planning permission for the offshore works in December 2006 and the Government, in August this year, supported the Planning Inspector's recommendation for permission to be given for the construction of an onshore substation.

Andrew Murfin, project director of London Array, said: "This is great news and is another significant step towards the development of this flagship project for the UK.

London Array consortium consists of EON UK, Shell WindEnergy and Dong Energy London Array (previously CORE), a joint venture between Denmark's DONG Energy A/S with UK partner Farm Energy.