The 500 kV AC project will cross the Qiongzhou Strait, connecting Gangcheng substation in Zhanjiang city of Guangdong and Fushan substation in Chengmai county of Hainan.
China Southern Power Grid Corp will lay the 34.7 km cable and a 144 km trolley wire to connect the two grids across the Strait.
The project will cost yuan 2.1 billion ($271 million) and is expected to be completed in the first half of 2009.