Viking link interconnector is a HVDC transmission line that is being developed to connect the Danish and British transmission systems
The loan will help fund the €2bn Viking link interconnector. (Credit: National Grid.)
UK-based electricity and gas utility company, National Grid has secured $743m green loan, which is supported by multi export credit agency (ECA), to support the 1.4GW Viking link between the UK and Denmark.
Structured under National Grid’s Green Financing Framework, the green loan consists of $488m from SACE Export Credit and $255m from Euler Hermes Export Credit.
The loan will help fund the €2bn Viking link interconnector, which is a high-voltage direct current (HVDC) transmission line that is being developed to connect the Danish and British transmission systems.
Once operational in 2023, the project is expected to be able to supply renewable energy to approximately 1.4 million homes.
Viking Link is a strategic infrastructure asset for the UK and Denmark
National Grid Corporate Finance head Katerina Tsirimpa said: “Britain’s energy system is in the midst of a rapid and complex transformation. We know we have a critical role in the acceleration towards a cleaner future.
“This green loan represents another important contribution towards our net zero commitment and it reinforces our strong leadership position in the path to a greener energy landscape.”
The firm said that Viking Link, is a joint venture between National Grid and Energinet, is a strategic infrastructure asset for the UK and Denmark.
Further, it has been included on the European Union list of Projects of Common Interest (PCI).
The project will enable the bi-directional flow of electricity depending on the prevailing energy demand and supply scenarios in Denmark and the UK, resulting in a more effective use of renewable energy in both the countries.
The 760km long transmission line will cover most of its distance through subsea route, as it will traverse through the exclusive economic zones (EEZ) of Denmark, Germany, the Netherlands, and Great Britain in the North Sea.
In July last year, National Grid and Energinet chosen cable and converter station suppliers for Viking Link Interconnector project.