The project is being developed by SP Energy Networks and National Grid Electricity Transmission.
The electricity “superhighway” will be able to carry power in both directions, but the majority is expected to flow out of Scotland.
The developers said the project would cost £2.5bn, external, but Ofgem said it had identified more than £43m of savings, external “cut from the project costs without impacting delivery or quality”.
Pearse Murray, of SP Energy Networks, said: “Given its technically complex and innovative nature other critical decisions remain to be taken and we continue to engage with Ofgem on these.”
Onshore construction work is expected to begin in Spring 2025, with offshore works commencing in Summer 2025.
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