Statnett, TenneT and KfW Reach Agreement on Germany and Norway Interconnector
Statnett, TenneT and KfW have agreed to develop an electricity interconnector between Germany and Norway with a goal to have it operational by 2018. The project is a key to further development of the North-European power grid, and of high priority to the partners.
Statnett is the Norwegian Transmission System Operator (TSO) and owner of the transmission grid. TenneT is one of four German TSOs. KfW is the German Bank for development and reconstruction.
The three parties have agreed to join as equity partners in a project set up to develop and construct a subsea interconnector between Germany and Norway, with Statnett holding 50 %, KfW at least 25 % and the remaining interest held by TenneT.
The cable will contribute to further integration of the North-European power markets and strengthen the North-European power grid, hence buoying the ambitions for increased renewable energy production in the whole region and thereby the EU’s climate and energy goals.
The interconnector between Germany and Norway, with a planned capacity of up to 1400 MW, is expected to be completed by 2018, in the anticipation that the project will receive all necessary licenses during 2013 and that we will be able to team up with suppliers to provide the necessary capacity in all relevant markets.
– This is an important milestone for Statnett, says Auke Lont, CEO of Statnett.- The interconnector between Germany and Norway will mark a new era for renewable energy in the North Sea region, and a major step towards a more interconnected European energy market. The interconnector will improve security of supply and bring more stable energy prices throughout the region, exploiting the diversities in our electricity systems, says Mr. Lont.
– We are very pleased with the active participation from the German government through the partnership of KfW. Together with our long-time partner TenneT, we have established a very strong team to move the project towards realization, Mr. Lont says.
Leading up to the agreement, the authorities have been active in securing a predictable framework, both with regard to regulations and financing. – With the governmental support from both countries, which is highly appreciated, I am confident that we will succeed, comments Mr. Lont.
Offshore WIND staff, June 21, 2012; Image: statnett