The proposal, for an Energy Recovery Facility at Buttington, has been sent to the Planning Inspectorate, and could be decided by Welsh Government ministers.
Because the project would create more than 10MWe it is deemed of 'national significance' and can be decided at government level – if they agree to accept the application.
The proposal has met with protests from some local residents but Broad Energy, which is behind the plan, say it will significantly reduce the amount of waste sent to landfill.
Montgomeryshire MP Craig Williams also raised opposition to the project in parliament earlier this year, saying: “Montgomeryshire covers 840 square miles with a population 50,000 people.
“That does not lend itself to a huge industrial incinerator with waste transported on our struggling trunk roads."
Broad Energy says the project will create 300 jobs during its construction phase and will employ 30 members of permanent staff once fully operational.
The Planning Inspectorate now has six weeks to decide whether or not to accept the application.
If it does, it will produce a report setting out its conclusions and recommendations around whether to grant permission.
The final decision lies then with the government.
The decision-making process could take up to 36 weeks, with further consultation to take place between the inspectorate and nearby residents.
Alistair Hilditch-Brown, Chief Executive of Broad Energy, said: “It’s an exciting milestone moment for us. We’ve been examining the feasibility of this project for a number of years and it’s taken a lot of hard work to get it to this point.
"It’s perfect timing in a way, given the Government's focus on net zero targets and a green recovery for the whole of the UK.
“The Buttington Energy Recovery Facility will provide an innovative way to significantly reduce the amount of waste sent to landfill while generating low-carbon energy at the same time.
"It will be a significant step in the right direction towards helping Wales to become a zero-waste nation by 2050, will provide a much-needed facility for businesses in Powys and the surrounding area and will contribute a significant amount of green energy for consumption.
Broad Energy says the site would be able to process non-hazardous, non-recyclable waste and transform it into 12.8-megawatts of low-carbon electricity annually, which would be exported to the National Grid.