OSLO—A joint venture led by Norway’s state-owned utility Statkraft said Tuesday that it would spend €1.1 billion ($1.22 billion) to develop Europe’s largest onshore wind project in central Norway, eight months after it was halted due to weak profitability.

The 1,000-megawatt project is set to double Norway’s existing wind power capacity by 2020, and includes six wind farms in the Fosen peninsula, the island of Hitra and in Snillfjord, a windy coastal area in central Norway. It will be developed by joint venture Fosen Vind DA, the project partners said.

“The project is a significant boost for renewable energy investment in Norway,” said the country’s minister of trade and industry, Monica Mæland.

The joint venture includes Statkraft with a 52.1% stake, Norwegian utility TrønderEnergi with a 7.9% stake, and Credit Suisse-led consortium Nordic Wind Power DA, whose 40% stake is backed by Swiss utility BKW AG, German insurer Talanx AG, and pension schemes including Finland’s ELO and Germany’s VWDA and WPV.

The project, one of Norway’s largest industrial investments outside the oil sector in the recent decades, was halted in June, after Statkraft and its partners deemed it unprofitable amid weak Nordic power prices. The move was criticized by the government, which is eager to support economic development outside the country’s embattled oil business, and a planned 5 billion kroner ($581 million) capital injection into Statkraft was reversed.