SaskPower will invest more than C$550m ($536.1m) to add 200MW of generating capacity at the Queen Elizabeth power station in Saskatoon in the Canadian province of Saskatchewan.
The project includes the construction of three 35MW natural gas turbines, six steam generators and a steam turbine designed to have a capacity of 95MW.
The new turbines and steam generators, which are expected to commence operations in 2015, will generate enough electricity to power about 200,000 homes.
Last year, the company commissioned three new natural gas-fired power units at the Queen Elizabeth facility, increasing the power station's generating capacity to 430MW.
When the new units are commissioned, the power station will have a generating capacity of 630MW.