A study has been commissioned to determine the feasibility of establishing an undersea power connection between the UK and Denmark, which would be used to transfer renewable power.
The National Grid and Denmark's Energinet.dk announced today (April 30th) that this investigative work will start immediately with a view to completing it by the end of the year.
It will determine possible technical solutions, project benefits, potential routes and landing points, the capacity of the cable and a commissioning timetable.
Cables already connect the UK with Ireland, France and the Netherlands and the new project forms part of a future North Sea "super grid" to connect offshore wind power.
Terry McCormick, head of UK and European business development at the National Grid, said: "More interconnection with Europe supports the integration of renewable energy and gives us more options to balance our network in UK."
In February, a coalition of eight leading energy firms wrote to the EU Commission requesting action on renewables, including urging the EU to take action to ensure that vital distribution infrastructure is modernised.