Ofgem has approved funding of £1.1bn for a new subsea link in the north of Scotland.
However, the funding is £105m less than that requested from Scottish Hydro Electricity Transmission (SHE Transmission).
If constructed, the cable would cover a distance of 100 miles (161km). It would also connect 1.2GW of new renewable electricity generation upon its completion, scheduled for 2018.
It will connect the electricity grid on either side of the Moray Firth.
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