The Nysäter project, to be developed jointly with investment manager Credit Suisse Energy Infrastructure Partners (CSEIP), will consist of 114 turbines.
Total investment in the wind farm, which is scheduled to start construction this year, is expected to amount to €500 million (£443m).
It will be located in the Västernorrland district in central Sweden, an area the energy firm described as having “excellent wind conditions”.
Anja-Isabel Dotzenrath, CEO of E.ON Climate Renewables said: “It is part of our strategy to expand our position for onshore wind energy in Europe. Nysäter means a significant expansion of our Scandinavian portfolio.”
E.ON will retain a 20% stake in the project while CSEIP will hold an 80% interest.