The new farm will include higher specification turbines, which could increase the amount of electricity generated by three times.
Commissioned in 1997, the Great Eppleton four turbine project near Sunderland, will soon supply more than 5,000 homes.
Consumers may be encouraged to switch energy suppliers after hearing that the farm could previously only power 1,300 households.
Rick Eggleston, managing director, REpower UK, said: "The practice of repowering old wind farms is predicted to increase as wind farms installed in the mid-late nineties are simply no longer competitive.
"It's much more economical to replace these and going forward they will produce a far better return on investment."
Work is scheduled to commence this autumn and REpower predicts the turbines will be completed by February 2010.
Earlier this week saw E.ON launch its winter gas guarantee, promising customers cheaper heating bills over the coldest months.
If you want to find out more about your energy options and how you could save up to £378 in minutes, click here.