The company hopes that the station will be fully operational by the beginning of 2011.
Discussing the approval for the new energy generating facility, EON's UK chief executive Dr Paul Golby said: "We are changing energy, both how we produce it and how we use it, and the new power station at Drakelow will help us to keep the lights on for the UK by bridging the gap between the technologies of today and tomorrow."
E.ON's approval for the new power station follows the company's announcement that its new renewable energy source in Cambridgeshire is fully operational.
The energy supplier's nine-turbine windfarm at Stag's Holt is expected to generate enough power for 9,000 homes a year.
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