Jonathan Brearley, the regulator’s chief executive, said it was also the first project to be approved using a new, speedier process for important grid infrastructure.
He added: “Ofgem is fully committed to supporting the Government to meet its aims of getting clean power by 2030.
“Today’s announcement is a further step in putting the regulatory systems and processes in place to speed up network regulation to achieve its aim.”
Under plans to reach net zero carbon emissions, Britain is moving from a system of big, highly-centralised power stations to one that is more spread out and dependent on harnessing less predictable wind and solar energy.
This is leading to lots of power being generated in certain areas, such as wind farms in Scotland, which are often located far away from the biggest demand centres, including London.
But tight grid capacity means north-to-south transmission cables can become too congested to send power from Scotland to the South East when it is needed most.
That forces the electricity system operator (ESO) to pay wind farms to switch off and gas power stations to fire up in the South, which ultimately costs bill payers.
The ESO is responsible for moving electricity around the system to keep the lights on. It is part of the National Grid but is set to become a government-owned entity this summer.
Officials at the ESO have privately warned fellow energy industry insiders that the grid in the South East is becoming so congested that they fear blackouts as soon as 2028, The Telegraph revealed last week.
The ESO has insisted “categorically” that there are no such forecasts for blackouts but called for zonal electricity pricing to ease existing grid constraints.
Eastern Green Link 2 and other similar projects– dubbed bootstraps by some experts – are also meant to alleviate the overall problem by creating extra motorways for power to travel between Scotland and England.
Ofgem said the scheme was one of 26 currently being considered under its new fast-track approvals process.
Sarah Jones, the energy and net zero minister, said: “To achieve our mission for clean power by 2030, we need a grid capable of transporting homegrown energy from renewable sources to power up our homes and businesses.
“These projects could support thousands of good jobs, whilst saving over £1bn by upgrading the system, using the latest in offshore technology.
“It forms part of our plan to reduce our reliance on fossil fuel imports so we can protect bill payers, boost Britain’s energy independence and accelerate our path to net zero.”
