The contract includes the supply, installation and commissioning of 14 V112-3MW wind turbines.
The 42MW order at Bordelum, in Germany's northernmost state of Schleswig-Holstein, is due to start being delivered in the final quarter of 2013, with commissioning from the first quarter of 2014.
Harm Truelsen, one of the managing directors of the wind power plant said: "This project allows the citizens in the local community to directly support the change in the energy mix towards renewables and generates additional regional value for our community."
Thomas Richterich, Vestas Central Europe president, said: "Citizen-owned wind power plants are one of the best ways to ensure the particularly high acceptance level among German communities, and this is what we see especially in northern Germany. It is highly encouraging to see initiatives like Bordelum III become a reality."