National Grid of the UK and Energinet.dksaid a feasibility study will jointly look at the technical and economic factors involved inbuilding an interconnector.

A statement said: “Theinterconnector could unlock significant economic benefits for both countries inhelping to maximise the potential of both offshore and onshore wind, add tosecurity of supply and enable a competitive market.”

The two companies first mootedthe idea of a UK-Danish link in May 2012 when they announced a "pre-feasibility" study, which will now be widened.

They have until October 2014to look at possible routes and landing sites, budgets and permitting.