TenneT has secured a €350m loan from the European Investment Bank (EIB) to fund the 1.4GW interconnection project in the North Sea between Germany and Norway.

Named as NordLink, the interconnection project will be a 624km-long bipolar High Voltage Direct Current (HVDC) link.

The NordLink interconnection project is expected to cover the energy needs of over 3.6 million homes in Germany. It would operate almost like a massive conventional power plant by transporting energy equivalent to that generated by nearly 466 turbines of 3MW.

EIB vice president Ambroise Fayolle, who is responsible for Germany, said: “Security of electricity supply and effective use of renewable energy will be improved significantly. 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. For us, the EU Bank, forward-looking investments in modern energy infrastructure are key to reach our ambitious climate goals.”

NordLink is expected to enhance energy diversification and supply security. It will also improve electricity market integration in Germany and Norway.

Other Northwest Europe and Scandinavian countries are expected to reap benefits from the new interconnection project.

TenneT CFO Otto Jager said: “With this subsea interconnector we can exchange energy between two complementary energy systems. 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."

Designated as a Project of Common Interest in the Priority Corridor Northern Seas Offshore Grid, the NordLink interconnection project will be owned by German firm DC Nordseekabel and a Norwegian TSO Statnett, with each having equal ownership.

DC Nordseekabel, a joint venture company of TenneT and KfW, a German promotional bank, will handle the construction of the German portion of the NordLink project besides getting necessary permits for it.

Image: From left to right: O.Jagger, CEO of Tennet, EIB Vice-President A. Fayolle, EIB Vice-President P. Van Ballekom and M. Kroon, CEO of Tennet. Photo: courtesy of European Investment Bank.