The €650 million project at the disused mine site in Silvermines will produce and store electricity using pump storage technologies.
It will have the capacity to power 200,000 homes.
Tipperary TD Alan Kelly – who is one of the main proponents of the project – says its progressing well.
The hydro-plant is expected to generate 400 jobs in construction and 50 in operation.
Environment Minister Denis Naughten says the Silvermines project is at the cutting edge of power generation.
While progress is being made, Alan Kelly says there is still a lot of work to do before the plant is up and running.
However he says locals will see some activity soon.
