The local planning authority, Cheshire West & Chester Council, had opposed the application for the £250m project, triggering a public inquiry last year. The government has now approved the project.
The proposed development at Lostock, Northwich, will generate enough power to supply 80,000 homes and create a total of 500 jobs during the construction period and a further 50 permanent operating posts.
A Department of Energy & Climate Change spokesman said: “It is essential we have a balanced energy mix in the future to provide low cost, efficient energy to households and businesses. This plant takes waste and turns it into something of great value – enough power to supply 80,000 homes - and in addition creates jobs for the local community.”
The public inquiry recommended that consent for the station be granted after hearing evidence about all aspects of the proposed development, including its potential health and visual impacts as well the implications for traffic safety and the local environment.
The site previously housed a now disused coal-fired power station.