Commenting on the announcement, prime minister Gordon Brown said: "The London Array is a flagship project in our drive to cut emissions by 80 per cent by 2050 and meet future energy needs."
Onshore work in the project will begin this summer, with offshore development due to commence in the early months of 2011.
It is thought that on completion the windfarm will provide enough energy to power 750,000 homes.
A research paper by Atmos Consulting recently claimed that increasing average wind speed along the south-east could provide greater opportunities for wind power generation.
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