Ofgem has granted a licence to own and operate the £156.7 million transmission link to the Westermost Rough offshore wind farm.
Transmission Capital Partners was chosen by the regulator following a tender process for the 210MW wind farm.
It is expected to generate enough electricity to power more than 150,000 homes.
Bidders competed to become Offshore Transmission Owners (OFTO) of the project, which is located around eight kilometres off the coast of Yorkshire.
“Since the scheme was launched in 2009, it has delivered £2.7 billion investment. Tendering reduces the costs of connecting offshore wind farms and the regime has already saved consumers between £200 million and £400 million as a result of Tender Round One,” according to Ofgem.
It expects to complete the licence grant for the Humber Gateway OFTO this summer.
Yesterday DONG Energy confirmed plans to build the world’s largest offshore wind farm in the UK.