Energy giant RWE confirmed today that construction will go-ahead of the Gwynt y Mor wind farm in Liverpool Bay.

Siemens will supply, install and maintain the 160 wind turbines and provide the connection to the national grid.

The Secretary of State for Energy and Climate Change Chris Huhne said: “This is the first, of what I hope will be many, examples of how we can make the most of our island’s huge renewable energy potential.

“I want to make sure we grab all the opportunities the rapidly expanding renewables industry has to offer, and that wind power can come of age under this government.”

The project is expected to be completed by 2014.

Siemens’ contract is worth £1bn and also involves the delivery of two turnkey offshore transformer platforms.

To build Gwynt y Mor, RWE has arranged for an offshore construction ship to be built by the Korean shipyard Daewoo.

The foundations and wind turbines are to be pre-assembled and then transported out to sea.