The finding of "no competitive interest" clears the way for the project to move forward with the environmental review necessary to grant a right-of-way for construction of the line.
The high voltage direct-current line, whose investors include Google, Good Energies II LP, the Marubeni Corporation and Elia, would run about 790 miles in length and enable up to 6GW of offshore wind to be delivered to the grid.
The project consists of two power lines running from northern New Jersey to Norfolk, Virginia. Elia has acquired 10% and 5% shares of the first and second phases of the project respectively.
The government has identified wind project development areas off the coasts of Delaware, Virginia, New Jersey, Maryland, Massachusetts and Rhode Island and expects to begin awarding leases to developers later this year, deputy secretary David Hayes said during a Monday news conference.
It also expects to identify additional areas off North Carolina and Massachusetts in the coming months.