The transmission link that will carry Muskrat Falls power from Labrador to Newfoundland has cleared its final environmental hurdle.

The federal government on Tuesday released what's known as the Labrador-Island Transmission Link from environmental assessment. 

The decision had been expected, as proponent Nalcor Energy has already begun work on the underwater system that will carry power from Forteau, in southern Labrador, across the Strait of Belle Island to Shoal Cove on Newfoundland's Northern Peninsula. 

The Newfoundland and Labrador government gave environmental approval to the project in June. 

When completed, the link will run about 1,100 kilometres, with about 400 km of line across Labrador, 35km of underwater cable and about 700 km of line in Newfoundland. 

"We’re pleased to be moving forward and will continue to engage with residents and stakeholders across the province during construction," Nalcor Energy vice-president Gilbert Bennett said in a statement.