The approval from federal Bureau of Land Management (BLM) will see the link up of the state’s northern and southern power grids.

The line will run from north of Las Vegas to Ely and will support the development of renewable energy in the state.

The 500-kilovolt transmission line project is known as the One Nevada Transmission Line or On Line and is owned by NV Energy and Great Basin Transmission South.

The Energy Department is lending $343m in federal stimulus dollars for the project.

The new line will be open in January 2013 and is expected to provide better access to northern Nevada geothermal energy and southern Nevada solar energy.

BLM Ely district manager Rosemary Thomas said the agency has outlined a set of best management practices to NV Energy to minimize impacts during construction.

The BLM’s environmental impact statement concludes the line will not have significant environmental consequences, although it may displace some wildlife, according to vcstar.com.