A £35m gas-fired power station at Middleton has been given the green light.
The Middleton Clean Energy Plant will create around 100 jobs and could be operational by the end of 2016.
Lancaster City Council gave planning permission for the energy-generating centre on Monday.
David Evans, director of Fleetwood-based Clifton Marsh Power Ltd who will run the plant, was at Lancaster Town Hall for the decision.
Mr Evans, who was educated at the Friends School in Lancaster, said: “This is important to me because I hold Lancaster and Morecambe in high regard, and this is something I’ll be proud to leave in the area.
“The plant will sit very comfortably into the landscape. It will be of a very modern design, utilising the best available technology and materials and we will be working very closely with Lancashire Wildlife Trist to manage the ecology of the area.”
Mr Evans said he believed the gas plant would complement other energy sources in the area, such as Heysham Power Stations and the ever growing supply of wind turbines at Heysham.
“There is an urgent need for something to maintain consistency in the level of supplies. The Government is placing great importance on developing renewable power through more and more wind turbines, but what happens when the wind doesn’t blow? The supply becomes erratic, and this is where Middleton will step in providing the power where and when needed.”
The site at Middleton was chosen because when the wind drops and wind farms do not produce any power, the plant can instantly provide back up to the local electricity network.
Mr Evans also said his firm intended to use local suppliers.