The Scottish government through Marine Scotland has given the green light to the 1400MW NorthConnect link between Scotland and Norway.
A licence for the project has been granted by Marine Scotland completing the UK permitting process.
NorthConnect will allow the transmission of renewable electricity in both directions between the two countries via a 665km cable.
HV cables from the interconnector will connect with converter stations at Stirling Hill, Boddam, in Scotland and Simadalen in Norway.
Aberdeenshire Council approved the onshore cables in January and the UK electricity converter station in 2015.
NorthConnect chief executive Martin Reinholdsson said: “We are extremely pleased to have reached this important milestone in the project.
“I hope we can conclude on more achievements like this during the year and in 2020 begin building what will prove to be a very important link for the economies of both Scotland and Norway, and also for Britain and the whole Nordic region.”
NorthConnect head of development in Scotland Richard Blanchfield said: “I am delighted that the NorthConnect project has successfully completed all of the required UK construction permitting processes on its journey to becoming a reality.
“The interconnector will be able to monitor and respond instantaneously to meet the demands of either energy market and grid stability requirements.
“Crucially, it will be able to be called upon by National Grid in the event of a ‘black start’ situation, ensuring our lights stay on.
“NorthConnect is looking towards operation in 2023/24 and has already begun the process of finding suitable contractors to deliver this strategically important energy project.”