The project construction is scheduled to commence soon as the contracts have been already signed for the production and installation of the cable and converter stations.
TenneT CEO Mel Kroon said: "This is again a major step towards a more integrated European energy market, and an important contribution to the German energy transition.
"With this interconnector we can exchange energy between two complimentary energy systems, with Germany’s increasing production of wind power and solar power on one side, and Norway’s production from hydropower on the other."
Valued at approximately €1.5-2bn, the NordLink project will run between Tonstad in Norway and Wilster in Schleswig-Holstein/Germany.
Statnett CEO Auke Lont said: "The interconnector will contribute to a climate friendly and efficient energy system for the future.
"It will increase security of the power supply for consumers and create value for producers on both sides of the interconnector. The Nordlink investment decision underlines our conviction that the future is electric."
Statnett will own a 50% stake in NordLink, while TenneT and KfW, through their joint venture DC Nordseekabel, will each own a 25% stake.
Image: The 623km HVDC link will transmit renewable energy between Germany and Norway. Photo: courtesy of TenneT Holding B.V. 2014
