East Sussex County Council has given the go-ahead to the project which will aim to make a major contribution towards the delivery of ambitious targets to recover value from waste in East Sussex and Brighton and Hove.
It will generate electricity and supply power equivalent to the energy consumption of more than 16,500 homes from 210,000 tonnes of residual household waste generated in the areas.
This will then be supplied to the electricity distribution network, replacing electricity generated using valuable fossil fuels.
VES project director John Collis said: The approval of planning today recognises that this facility is a crucial part of the strategy to recover value from waste and reduce the amount going to landfill.
Waste is an incredibly valuable resource and energy recovery facilities have a critical role to play, together with recycling and composting.
A pollution prevention control permit to operate the facility was granted by the Environment Agency in November.