The UK Department of Energy and Climate Change has approved power generator InterGen's proposals to build a new 900MW gas-fired plant at the London Gateway Logistics Park in Essex.
The new power station, which is expected to cost about £600m, will comprise of up to two combined-cycle gas turbine (CCGT) units, each with a generating capacity of around 450MW.
According to the UK government, the proposed CCGT facility will take about three years to build.
The UK energy minister Charles Hendry said the new plant will be built carbon capture ready, which means that eventually CO2 emissions from the plant could be captured and transported for storage offshore.
"With a quarter of our electricity generating capacity shutting down over the next ten years as older plants close, new power stations like Coryton will play a crucial part in the country's energy mix as we make a move towards a low carbon economy," Hendry said.