The first step towards a large wind farm off the Lincolnshire coast has been taken.

A government-backed report has identified The Wash as particularly suitable for the project.

The site is one of three areas nationally earmarked to boost the country's renewable energy supplies.

While being more expensive, off-shore sites provoke less controversy than those on land.

Ideal location

Launching a consultation document on Friday, Energy Minister Brian Wilson said energy companies should concentrate on building the wind turbines offshore to cut costs and kick-start the renewable energy sector.

New government proposals should allow firms to build much bigger schemes than those previously approved.

Mr Wilson said: "As the wind farms will be closer together, it means developers can share their resources and help bring down the cost of this abundant source of energy,"

Powergen wants to build a large farm off the Lincolnshire coast, which is seen as ideal because of its shallow sandy sea-beds which make installing turbines easier, as well as good grid connections.

Large investment

Yesterday, plans were announced to build on-shore wind farms near Louth and Mablethorpe.

The government says although offshore wind power is more expensive, there is less local resistance to noise and to the sight of tall land-based turbines.

Last year Britain granted the first licences to build offshore wind farms at 13 sites which will involve an investment of �1.6 billion and supply about 1% of the UK's power needs by 2004-2005.