British utilities SSE, Iberdrola-owned Scottish Power and grid operator National Grid will develop a 4 gigawatt (GW) power link between Scotland and England, they said on Monday.
The multi-billion pound project, called the Eastern Link, will comprise two 2 GW subsea high-voltage direct current cables.
The project will enable enough electricity for around 4.5 million homes to travel up to 440 km from the east of Scotland down to two points in the north-east of England.
The east coast of Scotland is home to almost 1 GW of operational offshore wind farms with a further 4.4 GW in the pipeline.
Construction work is expected to begin from 2024, the companies said.
(Reporting by Nina Chestney; editing by Jason Neely)