The Secretary of State for Energy and Climate Change has granted consent for up to 288 offshore wind turbines to be situated off the Lincolnshire coast.
The Triton Knoll project has an installed capacity of up to 1,200MW - enough energy to power up to 900,000 households with home-grown renewable energy.
Jacob Hain, Triton Knoll project manager said: "We are delighted with this announcement.
"We believed that Triton Knoll was a very well sited project. Today's decision by the Secretary of State endorses this."
The development could attract billions of pounds of investment whilst also creating hundreds of jobs.
"This is a crucial milestone and means one step closer to being able to deliver this much needed energy infrastructure," Mr Hain added.
"Today's decision sends another positive message to the industry about the growth and potential of renewables in the UK."
The consent award is for the 'offshore array' which includes the offshore turbines, met masts, offshore substations, buried cables and a mobile facility for operations and maintenance.
The developers, RWE npower renewables will now examine the details of the consent and continue working on the planning application for the onshore electrical infrastructure needed to transfer the renewable energy generated to the national grid.
These applications are expected to be submitted to local authorities in 2014.
