The two transmission system operators plan to complete a ‘pre-feasibility study’ of the possible interconnector by the end of this year.

The companies will examine the technical issues involved, possible routes and landing points, and how the subsea link could play its part in a future North Sea ‘supergrid’ linking multiple European nations with offshore wind production.

The UK has major offshore ambitions, while Denmark plans to meet 50% of its power needs from wind by 2020.

Terry McCormick, head of UK and European business development at National Grid, says: “More interconnection with Europe supports the integration of renewable energy and gives us more options to balance our network in the UK.

“It could also meet European objectives of bringing more competition to the market. We look forward to working with Energinet to examine the possibilities”.

Britain currently has three operational cable interconnectors with Ireland, France and the Netherlands. National Grid says projects are underway looking at possible connections with Norway and Belgium, and increasing the capacity of links with France and Ireland.

Denmark has interconnectors with Norway, Sweden and Germany. The country is currently building a link with Norway and is investigating an interconnection between Denmark and the Netherlands.