The Tasmanian Government has announced that construction on the $400 million Musselroe wind has been given the go ahead.


The 168 megawatt wind farm is expected to generate in excess of 200 jobs during the construction phase.


Premier Lara Giddings said a workforce of around 130 would be based on site at Cape Portland or in accommodation about 20 km away at Gladstone during construction.


"The Musselroe project will be an integral part of the local community both during construction and when the wind farm is operational by mid 2013," Ms Giddings said.


The wind farm is expected to generate electricity to around 75,000 households and offset 500,000 tonnes of Co2 annually.