A £16 billion new nuclear power station looks almost certain to be built in West Somerset after the European Commission officially approved plans for Hinkley Point C near Stogursey.

Business leaders welcomed this week's formal go-ahead for the nuclear power station, which could be up and running within the next nine years.

The development is expected to pump millions of pounds into the local economy with an estimated 25,000 workers needed for its construction alone.

If all goes according to plan, it could be operational by 2023 and would employ around 900 people while supplying seven per cent of the UK's energy needs.

Developer EDF Energy still has to agree a final investment package to finance the project but bosses from the French power giant welcomed the commission's announcement.

Henri Proglio, EDF chairman and chief executive, said: "The approval by the European Commission is a major milestone for the Hinkley Point C project.

"Now EDF and partners have to finalise the agreements needed to reach a final investment decision.

"Building EPR reactors in the UK will provide huge benefits for both countries in terms of job opportunities, economic growth and skills, further strengthening France and United Kingdom fruitful partnership."

The European Commission has spent the last 12 months investigating whether the British Government's price guarantee for electricity generated from Hinkley C amounted to illegal state aid.

On Wednesday, the commission voted to agree the deal, effectively clearing the way for the station to be built.

Cllr Tim Taylor, leader of West Somerset Council which will host the station, said: "This news is very important and represents another key piece of the Hinkley Point C jigsaw falling into place.

"We welcome the robust analysis that has been applied by the European Commission and recognise the importance of this decision for both EDF Energy and the consumer.

"We want to see the project begin in earnest and continue to do all we can to maximise the opportunities for local people and businesses whilst ensuring that our communities are protected."

Leader of Somerset County Council, Cllr John Osman, said the announcement was a "giant step forward" for the project.

"The Hinkley C development will transform our county's economy in years to come and having this high-profile development on our doorstep confirms Somerset as a serious destination for business growth in Britain," Cllr Osman said.

Somerset Chamber of Commerce said Hinkley C would provide an important boost for economic growth and job creation in the region.

Rupert Cox, chief executive of the chamber, said: "This is another crucial step along the long road to the construction of Hinkley Point C, which will provide millions of pounds of worth of business for Somerset and South West businesses.

"As EDF Energy works towards making its final investment decision, the Somerset chamber will continue to work with them.

"We have made excellent progress so far with early contracts already awarded to local businesses, but this is just the tip of the iceberg as we develop tendering programmes that provide business for local companies for the next nine years of construction and 60 years of operation."

The chamber manages the Hinkley supply chain portal and is the first point of contact for local businesses which want to be part of the construction of the proposed nuclear power station.

Bridgwater and West Somerset MP Ian Liddell-Grainger said the commission had been right to give the project the go-ahead.

He said: "This signals a new era of prosperity for West Somerset as work progresses on what will be the largest civil engineering project in Europe.

"Hinkley will be a national centre of nuclear excellence, with hundreds of young people assured of the training that will lead to well-paid careers.

"There will be an enormous boost for local suppliers and hundreds of other companies and everyone should soon start to see the benefits of the infrastructure improvements the project is going to trigger."

But environmentalists and anti-nuclear campaigners vowed to continue the fight against the proposals.

Members of Stop Hinkley said they were extremely disappointed by the decision and maintained the price guaranteed was a Government-backed subsidy.

Spokesman Allan Jeffrey said: "This deal is clearly illegal under European law; it will saddle UK consumers with the bill for paying

huge subsidies for decades and yet there are more cost effective and safer ways of providing low carbon electricity or not using the energy in the first place.

"It is mind boggling how the UK Government managed to convince the commissioners to go along with this crazy plan without even

the pretence of a competitive process."

The Austrian Government has already said it intends to challenge the commission's decision in the European Court of Justice.

Stop Hinkley said that would leave the project "in limbo" and claimed Hinkley C could be held up for at least another year.

"Legal action would take at least a year to conclude and EDF Energy would have to decide whether or not to risk proceeding with the project in the meantime in case it has to be abandoned if the Austrian appeal is successful.

"It seems very unlikely that a final investment decision will be taken before the 2015 General Election," Stop Hinkley said.

Hinkley C has already been the subject of one failed legal bid which was launched by the Irish National Trust.

Campaign group Nuclear Free Local Authorities is hoping it can persuade the Irish Government to join Austria in its legal challenge against the commission.

The group said the electricity price guarantee approved by the commission would lumber UK consumers with inflated energy bills and hinder the growth of renewable technologies.

But the UK Government is adamant new nuclear power stations like Hinkley are vital for Britain's future energy security.

Energy and Climate Change Secretary Ed Davey said: "This is an important next step on the road to Britain's first new nuclear power station in a generation.

"While there is much work still to do before a final contract can be signed, the announcement is a boost to our efforts to ensure Britain has secure, affordable low carbon electricity in the 2020s.

"After a thorough, detailed and independent analysis of our proposed project with EDF, this decision shows the European Commission agrees that this is a good deal for consumers and enables us now to proceed to the next stage."