Up to 400 construction workers will be employed during the redevelopment of the Great Island power station at Campile in Wexford.
In addition, around 40 people will be employed on the site when the new development is finished.
It will be located within the existing operational power plant facility.
Planning permission was granted by An Bord Pleanála earlier this month for the €250 million redevelopment of the station by Spanish energy company Endesa.
The new plant will be a replacement for the existing heavy fuel oil power station currently in operation.
The plant will be operated as a natural gas turbine plant, with its electricity generating capacity to be increased and CO2 emissions to be cut by 50%.
Endesa had previously announced it would spend €450 million upgrading the power stations which it took over from the ESB two years ago - Wexford's Great Island, Tarbert in Co Kerry, Rhode in Co Offaly and Tawnaghmore in Co Mayo.
The €250 million upgrading of Great Island, due to be completed in 2012, represents the greatest portion of that investment so far.
Endesa is now the second biggest utility in Ireland, after the ESB.
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