Conservation Minister Kate Wilkinson has signed off the 200MW tidal power station at Kaipara Harbour.
Last month the Environment Court approved Crest Energy's $600 million project on Northland's west coast, which will be the first time in New Zealand where a tidal harbour flow had been used to generate energy.
The planned 200 turbines on the Kaipara seabed, each 24m high but 6m under water at low tide, and with about 8000 million cubic metres of water passing in and out of the harbour each day, should proved power for the whole region from Albany to Cape Reinga.
Ms Wilkinson, in signing off the scheme as a restricted coastal activity under the Resource Management Act today, said its large-scale meant it could play a significant role in the development of a new source of renewable energy.
Three turbines will be installed at first and the project would be deliberately staged as part of an approach to allow for ongoing monitoring of effects, clear reporting and enforceable consent conditions.
A publicly notified review process would occur after each stage of installation and the development can be halted - and turbines ordered to be removed - if significant environmental impacts are detected.
"I am aware of concerns raised by submitters and believe the conditions set out would ensure any possible negative impacts can be properly monitored and accounted for," Ms Wilkinson said.
Northland Regional Council will monitor the environmental impact on a wide range of marine wildlife such as sharks, rays, marine mammals and fish, including snapper.
Crest Energy is a private company funded by 30 shareholders, the largest being Todd Energy.
The company earlier said it would be at least three years before the first locally-made turbines were installed.
NZPA