The Dutch and Danish grid operators have committed to the 300-kilometre high-voltage direct-current (HVDC) Cobra cable which will run from Endrup in Denmark to Eemshaven in the Netherlands.
Tennet said it expects the link, which is set to be completed in early 2019, to "contribute to the integration of large volumes of wind energy in the electricity grid", while also "improving security of supply in both Denmark and the Netherlands".
The two companies both own a 50% share in the project. They will now look to secure the required construction consent by late-2015, ready for work to start in 2016.
Converter stations will be constructed at Eemshaven and Endrup. They will transform the power from the AC to HVDC for more efficient transport along the cable. The power will then be transformed back again at the corresponding station for integration in the grid.
The European Commission is to aid the project with a EUR 86.5 million grant through the European Energy Programme for Recovery. The Cobra link is seen as a step towards greater integration of the electricity grid in the North Sea.
In 2008, Tennet commissioned the 700MW, 580-kilometre NorNed link between the Netherlands and Norway. It also constructed the 1GW, 260-kilometre BritNed cable between the Netherlands and the UK, which came online in 2011.
Energinet operates subsea cables between Denmark and Norway, Sweden and Germany.