By signing the ownership agreement for the NordLink, the first high-capacity power cable between Norway and Germany, partners TenneT, Statnett, and KfW, which is represented by KfW IPEX-Bank, have made the final investment decision for the project.
The construction of the system will start as soon as contracts are signed with the contractors responsible for the production and installation of the cable and converter stations.
“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,” said Mel Kroon, CEO of TenneT.
“The signing is a very important step for all three partners. 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,” said Statnett’s CEO, Auke Lont.
“The NordLink interconnector is one of the major projects in the European energy sector, and will have a large impact on the European energy system. The financing of this project together with our partners is a cornerstone for the turnaround in the German energy market and an important project for KfW. We are proud to be part of it,” added Markus Scheer, member of the Management Board of KfW IPEX-Bank.
Connecting Norwegian hydropower to German wind energy will be benefitial for both countries. When for instance a surplus of wind energy is produced in Germany, this can be exported to Norway via NordLink. The water reservoirs in Norway will then function as natural storage for wind energy by retaining the water in the reservoirs. Likewise, Germany can import the renewable Norwegian hydropower when demand is high, TenneT wrote in a press release.
The interconnector comprises an investment volume of approximately EUR 1.5 – 2 billion. The NordLink project will be realised by the Norwegian TSO Statnett and DC Nordseekabel GmbH & Co. KG, both of whom have a share of 50%. The German TSO TenneT and German promotional bank KfW both have share of 50% in DC Nordseekabel. DC Nordseekabel is responsible for the construction of the German part of the project, including permits.
The HVDC link will have a capacity of 1.400 megawatts (MW) and will run between Tonstad in Norway and Wilster in Schleswig-Holstein/Germany.