Norway’s power grid operator Statnett has signed an agreement with UK National Grid for construction of a 1.4GW interconnector between the two countries.

The subsea electricity cable will extends over 730km, connecting Blyth in Northumberland to Kvilldal in Rogaland on the Norwegian side.

It is expected that the subsea electricity interconnector project will be completed by 2021, and will cost approximately £2 billion.

The project will also entail construction of a converter station on both ends of the subsea link to connect it with the onshore grid.

“It also adds to the diversity of energy sources for UK and potentially can reduce peak prices with benefits for consumers and businesses.”

UK Energy Secretary Ed Davey said: “Britain will benefit from Norwegian green hydropower, at the flick of a switch, providing green backup power when the wind’s not blowing, and this will actually save people money.”

The UK intends to meet 14% of its annual household demands for electricity with hydropower imports from Norway, reports BBC.

Recently, the country also received permission to set up the 1GW Nemo link interconnector with Belgium.