Tennet and its partners Statnett and KfW have given approval for the link to proceed and construction will begin work once contracts with suppliers have been signed.
The 1.4GW 500-kilometre subsea interconnector will carry power produced by wind sources to Norway and hydropower to Germany.
Norwegian transmission operator Statnett said the link would increase power security, boost production of renewable power and stabilize the supply of electricity throughout the year.
Construction of the project is expected to finish in 2019, with commercial operations beginning in 2020.
Statnett is also partnering with the UK's National Grid on another 1.4GW cable linking Norway with the UK through a 700-kilometre subsea cable.