Sembcorp Utilities is behind plans to build the 1.7GW Tees combined cycle power plant on land at the Wilton International manufacturing site on Teesside.
The project will utilise existing gas and national grid connections on the site of the former Teesside Power Station, which was demolished six years ago.
Taking more than three years to build, the new gas-fired power station will employ up to 1,000 during the construction phase.
The project being developed by Sembcorp Utilities, part of the Singapore-based Sembcorp Industries Group, involves building two main gas generating modules, two steam turbines, and two electrical generators.
It is the third major project to be approved this year following the development consent orders granted for Tilbury 2, a new port facility to be built at the Port of Tilbury, and Millbrook Power, a gas-fired power station proposed in Bedfordshire.