Shams 1 - which means 'the sun' in Arabic - uses advanced parabolic trough technology to harness the light from over 250,000 mirrors.
Largest concentrated solar power plant opens in Abu Dhabi
It will be the biggest of its kind in Wales with more than 60,000 solar panels.
The site at the Bodorgan Estate, near Aberffraw, has a target of producing enough energy to power 4,500 homes.
It follows other successful applications in Pembrokeshire and Carmarthenshire.
Environment correspondent Iolo ap Dafydd reports on what is making large scale solar power popular
Anglesey council votes in Wales' 'largest' solar park
It has raised its charges for both types of fuel by about 6%, adding £80 a year to the average dual fuel bill.
Its rival SSE, which trades as Scottish Hydro, Swalec and Southern Electric, has already said it will raise its prices by an average of 9% from Monday.
"We know that household budgets are under pressure and this £1.50 per week rise will be unwelcome," said managing director Phil Bentley.
"However, we simply cannot ignore the rising costs that are largely outside our control, but which make up most of the bill."
British Gas also warned that the rising cost of government energy policies was likely to add even more to household bills next year.
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Millions of households are at risk of power black-outs within three years because coal stations are being replaced with wind farms, the energy watchdog has said.
In its strongest ever warning, Ofgem said there may have to be “controlled disconnections” of homes and businesses in the middle of this decade because Britain has not done enough to make sure it has enough electricity.
The regulator's new analysis reveals the risk of power-cuts is almost 50 per cent in 2015 if a very cold winter causes high demand for electricity.
It predicts Britain will face power shortages because old coal and oil plants are being forced to shut down under the European Union’s environmental regulations. This will partly be replaced by wind farms, but they are less reliable and can only generate electricity in the right weather conditions.
Ofgem believes the lack of spare power generation “could lead to higher bills”, which are already at record high of £1,300 per year.
The report will be a blow to Ed Davey, the new Energy Secretary as sweeping reforms in the new Energy Bill will come too late to avoid the squeeze in 2015 – the year of the next election.
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