Gateshead Energy Centre will initially provide power for nine buildings containing apartments and offices in the Gateshead Centre and Gateshead Quays developments. The facility will be built in a way that allows expansion as further development takes place in the area, pushing up local energy demand.
Construction work will begin in summer 2015 with power starting to be produced by the end of 2016.
Balfour Beatty regional managing director Eddie Tribe said: “We will provide an integrated civils and engineering capability to deliver a facility which produces cheap and low carbon electricity for its customers. We’re looking forward to working together with the local community in Gateshead to deliver a scheme which will offer work and educational opportunities throughout its construction.”