Devon could be fined up to �4m if it does not reduce its waste

The station will burn 30,000 tonnes of waste and generate up to 2.5 megawatts of electricity annually.

Devon County Council's primary reason for the power station, which will cost about �9m, is to reduce the amount of waste currently going into landfill sites.

A similar scheme is also being considered in Cornwall.

"No option"

The amount of waste going into landfill sites has been increasing for years and there are concerns that many are nearing capacity.

Devon has managed to reduce its landfill waste by 5% over the past year by persuading people to bring more garden waste to recycling centres.

But if steps are not taken to reduce the amount of waste, Devon could be fined up to �4m in government penalties on top of the landfill tax, which is increasing by �3 a metric ton to �18 from next April.

Burning waste for energy could be a possible solution and plans are being put forward at Exeter's old incinerator at Marsh Barton to burn 30,000 tonnes of waste each year.

It's much safer than just pushing stuff into landfill sites that pumps out cubic metres of methane gas Councillor David Morrish

The plans have been prepared by Devon County Council, working with Exeter City Council and waste management companies.

The council's executive member for the environment, Councillor David Morrish, says landfill waste has to be minimised and that doing nothing is not an option.

He said: "I believe the power station is a safe option.

"It's much safer than just pushing stuff into landfill sites that pumps out cubic metres of methane gas every day."

Mr Morrish says the council will also continue to promote other recycling initiatives.

He said: "The efforts by the people of Devon have been magnificent. We will continue to ensure these are maintained and that we examine every method of reducing our waste."

Devon County Council is preparing to bid for �6m of government funding towards the cost of the power station.

A Bristol-based company, Compact Power Limited, is being considered to develop the hi-tech facility.

Cornwall County Council is also considering an alternative waste scheme, by developing its own industrial green energy park near Goss Moor.