Construction on a wind farm to supply power to the Nelson Mandela Bay municipality is due to start near Port Elizabeth, MetroWind said on Thursday.
The company said it had been given the green light to build and operate a R550 million wind farm in Van Stadens, between Port Elizabeth and Jeffrey's Bay.
Construction would begin in September.
"The farm, to be known as MetroWind Van Stadens Farm, is expected to start supplying the municipality and Eskom with power in October next year," said company director Donald McGillivray.
Eskom would be supplied with power for a period of 20 years, he said.
"The project is a step forward in the country's pursuit of clean, renewable energy."
McGillivray said the community was fully behind the farm.
The government asked for proposals from renewable energy producers last year for the construction and operation of wind farms in the province.
MetroWind was one of the 28 preferred bidders.
It was granted a licence by the National Energy Regulator of SA.
The municipality also gave its consent for the wind farm.