Scottish Power Renewables is to build up to 172 wind turbines 43 miles (69km) off the coast of Norfolk.
The East Anglia Three project is one of four the firm wants to develop off the region's coast and the second to receive planning consent.
RenewableUK, the renewable energy trade association, said it was a "vote of confidence" for the industry.
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Planning permission was granted by business secretary Greg Clark.
Scottish Power Renewables said the wind turbines are "larger and more efficient next generation" structures, reaching up to 247 metres (810ft) at the tip.
The electricity will be fed ashore at Bawdsey, on the Suffolk coast, and transferred to the transformer substation at Bramford, near Ipswich.
Construction is expected to start in 2022, with the project creating a range of new jobs over 30 years.
RenewableUK's executive director Emma Pinchbeck, said: "Not only will the wind farm use the latest, innovative turbines, but it will also provide a massive boost for local businesses to grow."
Work on the company's first project, East Anglia One, is under way and the wind farm is due to be fully operational in 2020.
An energy company's second major wind farm off the coast of East Anglia has been given the go-ahead.