The US$1.2 billion plant is being developed by Chilean company Inversiones Bosquemar Limitada in a bid to diversify industrial and domestic power supply.
It plans to install a total of 273 wind turbines in three separate stages, giving the completed power plant a total production capacity of 540MW.
The project was given the green light after a series of comprehensive studies testing wind strength and consistency at the site. The turbines selected for the plant have been sourced from Britain and will stand 164ft (50m) tall.
Construction work on the first stage of the project is set to begin soon, with the installation of 54 turbines at a cost of US$224 billion. Once this part of the project is complete, the Lebu site will be able to generate up to 108MW.
The wind farm has been welcomed by local environmental group, Laraquete Sustentable, which praised the initiative at a recent cultural festival held at the Boca Lebu beach.
Laraquete Sustentable spokesperson, Rodrigo Mellado, told Radio Bío-Bío that it was important to encourage clean energy projects, such as wind power, which contribute to national progress.
Inversiones Bosquemar is currently seeking environmental approval for the second and third stages of the project.