The Department for Energy and Climate Change gave consent to the £100 million project following recommendations made by the Planning Inspectorate.
Clocaenog will be built near the north Wales town of Denbigh and in the same region as RWE's 576MW Gwynt y Mor offshore project.
The project will comprise of 32 wind turbines, although a supplier has yet to be announced. Capacity is expected to be between 64MW and 96MW.
Construction of the project could create 236 jobs in the area, which will also benefit from a community fund being set up by RWE.
The largest onshore project in Wales will be the 228MW Pen y Cymoedd project being developed by Vattenfall near Neath in the south of the country.