The owner of the Tynagh power station in Loughrea, Co Galway is reportedly planning to spend more than €100m to build a 299MW gas-fuelled power station on the site.
It will be used to provide back-up electricity to the national grid when output from renewable energy is insufficient to meet demand.
Construction of a plant of 300MW or more is considered a strategic infrastructure development, so this plant's planning application comes in under this threshold.
An Bord Pleanala has agreed the planned development does not constitute a strategic infrastructure development.
The company intends to make an application to Galway County Council next month.