Scottish Hydro Electric Transmission, a subsidiary of SSE, has said it is to accept funding of £1.1bn from Ofgem for its new subsea cable.

The funding is however £105m less than SHE Transmission initially applied for.

Over the construction phase of the project, some 600 jobs will be created. When completed, the 161km cable will connect two sides of the Moray Firth. It will also enable the connection of 1.2GW of new renewable electricity generation to the grid following its completion in 2018.

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David Gardner, SSE's Director of Transmission, said: "The investment of around £600m for financial year 2015/16 will see work commencing on the vital Caithness-Moray subsea link, along with further investment in a number of other approved projects, all unlocking renewable sources of energy for decades to come.

"Importantly, local people will benefit from the hundreds of jobs it will support, with more than 100 apprentices and graduates being trained with the vital engineering and technical skills needed to serve the network across the North of Scotland in the future."

(JP/MH)