British Gas owner Centrica on Wednesday announced plans for the construction of a new offshore wind farm in UK waters that will generate enough electricity to power around 200,000 homes.
The company will invest £725 million in the 75-turbine wind farm five miles off the Lincolnshire coast from Skegness, adjacent to its existing developments at Lynn and Inner Downsing, which power 130,000 homes.
Construction of the 270MW renewable energy facility is scheduled to start in 2010 and the plant will be operational towards the end of 2012, taking the company's total installed renewable capacity to 650 MW.
The company said the government's decision to offer additional financial incentives for offshore wind projects had been instrumental in enabling the project to go ahead.
Meanwhile, the company announced it would sell a 50 per cent stake in its Lynn, Inner Downsing and Glens of Foundland wind farms to US-based investment management company TCW for a consideration of £84 million.
According to Sam Laidlaw, chief executive of Centrica, the company's decision to build Lincs illustrated its continued commitment to develop renewable generation and confirmed its position as one of the UK's leaders in green energy.
He added that the government's financial framework for offshore wind had been fundamental in improving the overall project economics of the development.