Construction work is set to start on Spalding’s £100m power station project.
Intergen is creating an open cycle gas-fired plant and a combined cycle gas-fired plant alongside battery storage.
The expansion will see enough energy created for around a million homes.
It will create a total of 945mw and is expected to be online by 2020.
The power company owns the existing power station in the town and is hoping to create jobs with the construction process.
Intergen received planning consent from the Government in November 2010 and revised in 2015.
The plant will be fuelled by natural gas and Intergen said: “Modern equipment and technology will be employed to control emissions, which will largely consist of water vapor and carbon dioxide.
“All aspects of the environmental performance will be monitored by the relevant authorities including the Environment Agency.”
It is looking to create more than 1,000 jobs during construction with 20 permanent roles once operational.
The 300mw open cycle gas-fired station will supply power during periods of peak demand.