ScottishPower Renewables has made a final investment decision to go ahead with the construction of £2.5bn East Anglia ONE Offshore wind farm off the Suffolk Coast.
The project is in line with the company's strategy to meet the government's cost reduction targets.
East Anglia ONE is expected to start services in 2020 and is the first of four wind farms that ScottishPower is planning to build off the East coast.
Construction on the 102-turbine facility will begin in 2017, with plans to install first turbines by 2019.
During the construction phase, the wind farm will create nearly 3,000 jobs.
ScottishPower Renewables East Anglia ONE project director Charlie Jordan said: "East Anglia ONE will deliver substantial environmental benefits for the UK, it will stimulate considerable UK investment, and it will support thousands of jobs."
Upon completion, East Anglia ONE is said to become the best value offshore windfarm in the world, and one of the largest with a capacity of around 714MW.
An offshore substation will collect the electricity from the turbines and transform it to a form suitable for transfer to shore.
The electricity generated at the plant will be enough to power nearly 500,000 homes. It is transported using two offshore export cables.
Jordan added: "Offshore wind has proven itself as a technology that works, and the more offshore wind capacity we have in the UK, the more secure our energy supplies will be.
"East Anglia has some of the best conditions anywhere in the world for the development of offshore wind, and we are fully committed to the region, with future developments already in the pipeline."
The Port of Lowestoft will serve as the operational base for the project, under a £25m deal.