The provincial regulator has approved Nova Scotia Power's plan to build a $120-million wind farm on Nuttby Mountain, north of Truro.

The Nova Scotia Utility and Review Board released its decision on Monday.

The power company applied to build the 22-turbine farm after acquiring a majority share of the project from owner EarthFirst Canada Inc. in April.

Calgary-based EarthFirst filed for bankruptcy protection and turned over the site instead of paying Nova Scotia Power the money it owed for breaking its wind power contract.

The Nuttby Mountain wind project is key to Nova Scotia Power's plan to meet renewable energy targets set by the provincial government. The company must generate five per cent of its electricity from renewable sources next year.

The project qualifies for a $14-million energy efficiency incentive from the federal government, the review board decision revealed.

Though it approved the Nuttby project, the board refused to give advanced permission to Nova Scotia Power to sell 51 per cent of it.