The European Investment Bank (EIB) has granted EUR350m loan to TenneT to fund the development of the 1,400MW NordLink interconnection project between Germany and Norway across the North Sea.
The 624km bipolar High Voltage Direct Current (HVDC) link is being developed and owned equally by Norwegian transmission system operator Statnett and DC Nordseekabel.
EIB Germany vice-president Ambroise Fayolle said that the project is expected to significantly improve security of electricity supply and effective use of renewable energy.
“Initially, NordLink will bring surplus hydro generation form Norway to Germany. In the medium term, it will help ease constraints and allow the evacuation of surplus renewable generation from Germany to Scandinavia.”
Designated as a Project of Common Interest in the Priority Corridor Northern Seas Offshore Grid, the NordLink project is intended to improve diversification and security of supply while enhancing electricity market integration in the two countries.
DC Nordseekabel, which is equally owned by TenneT and the German promotional bank KfW, will construct the German part of the project and will also be responsible for permits.
TenneT CFO Otto Jager said: "The support of the EIB for this project shows the importance of investments like NordLink, integrating European electricity markets.
“There’s the increasing amount of wind and solar power produced in Germany on the one hand and the production of energy from hydroelectric power in Norway on the other.
“NordLink is a connection of European pertinence that benefits all countries, especially North-west Europe."
Scheduled to enter service in 2020, the interconnector will have capacity to provide renewable energy for more than 3.6 million German households.
Image: Officials from Tennet and EIB. Photo: courtesy of European Investment Bank (EIB).