Sutton Council has given permission to build an energy plant in Beddington, near Croydon.
Recycling energy company Viridor is ready to proceed with its Energy Recovery Facility (ERF) project this summer.
The Beddington ERF will process 275,000 tonnes of residual waste. It will generate 26MW of electricity – enough to power around 30,000 homes.
The project will also provide additional benefits to the local economy such as 40 new permanent jobs and business opportunities.
Head of development projects Robert Ryan said: “Our state of the art facility at Beddington will provide a safe, robust, cost-effective and environmentally-sound solution to the South London Waste Partnership’s residual waste treatment needs.”