TenneT Granted EUR 350 Million EIB Loan for NordLink
The European Investment Bank (EIB) will provide a EUR 350 million loan to TenneT to finance the 1.4GW NordLink high voltage direct current (HVDC) subsea interconnector between Norway and Germany.
The interconnection project is being developed by the Norwegian TSO Statnett and DC Nordseekabel, each with 50% ownership. DC Nordseekabel is equally owned by TenneT and the German promotional bank KfW, and is responsible for the construction of the German part of the project, including permits. In November 2016, Statnett and DC Nordseekabel applied for a EUR 800 million loan with the EIB to partially fund the construction of the EUR 2.1 billion NordLink.
Otto Jager, TenneT's CFO, said: "The support of the EIB for this project shows the importance of investments like NordLink, integrating European electricity markets. 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 interconnector, rated at ±525 kilovolt (kV), will stretch over 623 kilometres and will be the first direct power link between the German and Norwegian electricity markets.
NordLink has been designated as one of the European Commission’s projects of common interest to help create an integrated European Union energy market.
Ambroise Fayolle, EIB Vice President, 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."
In September 2016, Statnett and DC Nordseekabel officially started the construction of NordLink in Wilster, Germany. The project is expected to be completed by the end of 2019.