Called The Turbine Theatre, the 200-seat venue will be run by artistic director Paul Taylor-Mills and will have its first performances on 22 August. Taylor-Mills was formerly artistic director at The Other Palace and co-produced the recent UK premiere of Heathers the Musical.
The theatre will open with a new revival of Harvey Fierstein's Torch Song, directed by Olivier Award winner Drew McOnie.
Taylor-Mills said: "I'm elated to be launching a brand new theatre at the iconic Battersea Power Station. The vision is a simple one, to enable world class artists to tell stories that enchant at The Turbine Theatre and eventually play beyond our London home. We're interested in being the starting point for new shows and also reimagining the older ones."
Torch Song will run from 22 August to 13 October, with initial casting composed of Daisy Boulton (Laurel), Dino Fetscher (Ed), Matthew Needham (Arnold) and Rish Shah (Alan). The piece has design by Ryan Laight, lighting by James Whiteside, sound by Seb Frost, with casting by Will Burton. Opening night is 6 September and further casting is to be announced.