Scotland yesterday staked its claim as Europe's green energy powerhouse as ministers approved plans for the continent's biggest onshore wind farm.

First Minister Alex Salmond said the £600m Clyde project - which will be capable of generating twice as much power as the current record holder in Spain - marked a "significant milestone" in meeting the nation's ambitious renewables targets. The development will see 152 turbines straddle hillsides on either side of the M74 motorway in South Lanarkshire by 2011, the year Mr Salmond and his government has vowed to see 31% of Scottish electricity demand met from green sources.

Mr Salmond said: "The Clyde wind farm will represent a very important step in the development of renewable energy in Scotland and in meeting shared European targets. It is another step towards making Scotland the green energy capital of Europe."

The announcement comes just days after Mr Salmond unveiled plans for a £100m biomass plant in Fife, the biggest of its kind in Britain, but follows a government decision to reject plans for an even bigger and more controversial wind farm, on the island of Lewis.

The new development will create some 200 jobs during its three-year construction phase near the villages of Abington, Crawford and Elvanfoot. It will be able to power 320,000 homes - but only when the wind blows at the right speed for it to reach its full capacity of 548 megawatts.

Mr Salmond's government is now very close to meeting its 2011 target. The installed capacity of renewable energy plants which have been approved, built or are under construction has topped 4.5 gigawatts, just short of the 5 gigawatts needed within three years to reach the target.

Scottish Government officials are currently reviewing another 36 applications for renewable energy developments, including 26 wind farms, nine hydro projects and a tidal power station.

Together they represent potential installed capacity of 2.5 gigawatts, raising hopes for an even more ambitious aim, of making half the nation's power from green sources by 2020. Mr Salmond, who was speaking before the World Renewable Energy Congress in Glasgow, said: "This announcement makes it virtually certain that the 2011 target will be met early and exceeded by the end of this parliamentary term and represents a significant milestone on the way to achieving the 2020 target. Scotland has a clear, competitive advantage in developing clean, green energy sources such as wind, wave and tidal power."