The funding is £105m less than the request made by SSE subsidiary Scottish Hydro Electricity Transmission (SHE Transmission) to ensure that consumers pay no more than required.
The project aims to deliver 1.2GW of renewable electricity through a new subsea transmission link between Caithness and Moray in Scotland.
Construction work on the link is due to start in the next few months with planned completion in 2018.
The link will connect the electricity grid on either side of the Moray Firth.
In September 2014, ABB secured a contract worth more than $800m to provide the Caithness-Moray high-voltage direct current (HVDC) power transmission link.
The Caithness-Moray link is expected to provide enough energy for about 2,000,000 residents in Scotland.
