Bord Gáis has appointed a GE/GAMA consortium to build its new €400m power plant in Cork, and says up to 300 people will be employed during construction, to start in October.
The proposed plant will be located within the ConocoPhillips refinery site at Whitegate in east Cork and is expected to start operating in early 2010.
The contract was awarded to GE/GAMA following a 10 month tendering process.
Dave Kirwan of Bord Gáis said: 'We will now start meeting again with the local residents and businesses to discuss our construction plans and explain how we intend to manage the project so as to cause least possible disruption in the area.'
Planning permission was granted by Cork County Council and arrangements for the electricity grid and gas pipeline connections are in place.
Bord Gáis entered the electricity supply business in 2001 and holds about 8% of the total Irish market.