A project that will bring surplus hydro generation from Norway to Germany is to receive a EUR 350 million loan from the European Investment Bank (EIB).

The loan to TenneT Holding B.V. will finance ‘NordLink’, the first interconnection between Germany and Norway across the North Sea. The bipolar High Voltage Direct Current (HVDC) link will have a capacity of 1400MW and a total route length of 624km.

The link is expected to will improve diversification and security of supply and enhancing electricity market integration in both countries, and more widely between Northwest Europe and Scandinavian countries. It is also designated as a Project of Common Interest in the Priority Corridor Northern Seas Offshore Grid.

 “Security of electricity supply and effective use of renewable energy will be improved significantly,” commented Ambroise Fayolle, EIB Vice President, responsible for Germany. “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.”

" The support of the EIB for this project shows the importance of investments like NordLink, integrating European electricity markets,” added Otto Jager, TenneT CFO. “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."

 The NordLink project will be realised by the Norwegian TSO Statnett and DC Nordseekabel GmbH & Co. KG, each with 50% ownership. DC Nordseekabel GmbH & Co. KG is equally owned by TenneT and the German promotional bank KfW. DC Nordseekabel is responsible for the construction of the German part of the project, including permits.