Project off coast of Lincolnshire to provide enough power for two large towns

Energy company Centrica has decided to go ahead with a large wind farm project off the coast of Lincolnshire.

The company, which owns British Gas, said it will put £725m into the 270MW project, which could power two cities the size of Cambridge.

But the firm warned that the project would not be viable without calling on the higher levels of subsidies announced in this year's Budget.

The firm sold interests in other projects and raised £340m of debt to raise cash for the project.

The windfarm, 8km off the coast of Skegness, will have 75 turbines. Construction is to begin next year and electricity will begin to be generated around 2012.

Ofgem, the energy regulator, has predicted that £200bn will have to be invested in green energy to meet the 2020 renewable targets.